<enum>I</enum><header>Expanding and preserving retirement savings</header> <section id="H51D76EE5FFB84D868B84080FBCEC9D58"><enum>101.</enum><header>Multiple employer plans; pooled employer plans</header> <subsection id="HF5FA54B7CAF042A58CEB976E6B0C3711"><enum>(a)</enum><header>Qualification requirements</header> <paragraph id="H57AF6E16FB3E497DB0FF9AE35DBC361E"><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 id="H220A962E2EC8458886C197B128BF3009" style="OLC"> <subsection id="H6FECCAAC6CDB454F81C9B043D9FA4318"><enum>(e)</enum><header>Application of qualification requirements for certain multiple employer plans with pooled plan providers</header> <paragraph id="H47B0BDA866C04E4386420A211F4877B3"><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="HDA7FBD7D82DA48C6AEE7C759060EA056"><enum>(A)</enum><text>is maintained by employers which have a common interest other than having adopted the plan, or</text> </subparagraph><subparagraph id="H738BC7F1BBEA49D0BEDCB7D0C4953C40"><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="HAD74BA9AF8384DEF8E586170BA7FE4A9"><enum>(2)</enum><header>Limitations</header> <subparagraph id="HD7278CE083F84B3BB3D03A1261B5D477"><enum>(A)</enum><header>In general</header><text>Paragraph (1) shall not apply to any plan unless the terms of the plan provide that in the case of any employer in the plan failing to take the actions described in paragraph (1)—</text> <clause id="H9010028E38C3469080764434FEF80C6F"><enum>(i)</enum><text>the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) will be transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in section 402(c)(8)(B) for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate, unless the Secretary determines it is in the best interests of the employees of such employer (and the beneficiaries of such employees) to retain the assets in the plan, and</text> </clause><clause id="H21280B7F2A854F178D3B0302B6DD23D0"><enum>(ii)</enum><text>such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided by the Secretary, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).</text> </clause></subparagraph><subparagraph id="H0144D0A553A34917B2C8770B097DD208"><enum>(B)</enum><header>Failures by pooled plan providers</header><text>If the pooled plan provider of a plan described in paragraph (1)(B) does not perform substantially all of the administrative duties which are required of the provider under paragraph (3)(A)(i) for any plan year, the Secretary may provide that the determination as to whether the plan meets the requirements under this title applicable to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, shall be made in the same manner as would be made without regard to paragraph (1).</text> </subparagraph></paragraph><paragraph id="HD4FC9B4EF9864D2BA6EB213C4FA8B76C"><enum>(3)</enum><header>Pooled plan provider</header> <subparagraph id="H4E15053D16C54F9594B0771C2DA3A444"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the term <term>pooled plan provider</term> means, with respect to any plan, a person who—</text> <clause id="H6DC44E271F0845298A178690E555C496"><enum>(i)</enum><text>is designated by the terms of the plan as a named fiduciary (within the meaning of section 402(a)(2) of the Employee Retirement Income Security Act of 1974), as the plan administrator, and as the person responsible to perform all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that—</text> <subclause id="H76AD6BF4B7A042E3AE180EDB53C4CEA1"><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="H106F8659AD4A4EEBAD7808C5CA2E6963"><enum>(II)</enum><text>each employer in the plan takes such actions as the Secretary or such person determines are necessary for the plan to meet the requirements described in subclause (I), including providing to such person any disclosures or other information which the Secretary may require or which such person otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements,</text> </subclause></clause><clause id="H0FC6891593F7493AB8AFA2DF08A54C42"><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 id="HFCC928EEB43846BABD9307D4AE7F593D"><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 id="H5FA88BA82B1D4288838C03D3188E2F65"><enum>(iv)</enum><text>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 id="H26070ACEE07447C1823DE4CC9BC9C823"><enum>(B)</enum><header>Audits, examinations and investigations</header><text>The Secretary may perform audits, examinations, and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this subsection.</text> </subparagraph><subparagraph id="H36EE4E47A5EE408E94F6994429282D27"><enum>(C)</enum><header>Aggregation rules</header><text>For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one person.</text> </subparagraph><subparagraph id="H520B48C477CA44F6910C5CD0985DD7FE"><enum>(D)</enum><header>Treatment of employers as plan sponsors</header><text>Except with respect to the administrative duties of the pooled plan provider described in subparagraph (A)(i), each employer in a plan which has a pooled plan provider shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subparagraph></paragraph><paragraph id="HD6F9842409E046EF8FF59ACBEE7A9AE3"><enum>(4)</enum><header>Guidance</header> <subparagraph id="H0675F0853AE04FFB9488AFC754B59C3A"><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="H7F6FA561C7CF426D9FC8BAEDECFFB018"><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="HF9496098CB4945398D6442131B80CA98"><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 employer in the plan and the assets and liabilities of the plan attributable to employees of such employer (or beneficiaries of such employees), and</text> </clause><clause id="H8A93F405849F4EDCBD6BCC0C63FB14ED"><enum>(iii)</enum><text>identifying appropriate cases to which the rules of paragraph (2)(A) will apply to employers in the plan failing to take the actions described in paragraph (1).</text> </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 demonstrates a lack of commitment to compliance.</continuation-text></subparagraph><subparagraph commented="no" id="H3D989AD822464876917F6D25C36465D3"><enum>(B)</enum><header>Good faith compliance with law before guidance</header><text>An employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the Secretary under this paragraph if, before the issuance of such guidance, the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this subsection to which such guidance relates.</text> </subparagraph></paragraph><paragraph id="H2F60AB876B4546319CF979F9EEE54034"><enum>(5)</enum><header>Model plan</header><text>The Secretary shall publish model plan language which meets the requirements of this subsection and of paragraphs (43) and (44) of section 3 of the Employee Retirement Income Security Act of 1974 and which may be adopted in order for a plan to be treated as a plan described in paragraph (1)(B).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H1177EAC093C648DBA0F82F908E5FCE85"><enum>(2)</enum><header>Conforming amendment</header><text>Section 413(c)(2) of such Code is amended by striking <quote>section 401(a)</quote> and inserting <quote>sections 401(a) and 408(c)</quote>.</text> </paragraph><paragraph id="H10E1CB1B4D14467399AEC8F07DEA3247"><enum>(3)</enum><header>Technical amendment</header><text>Section 408(c) of such Code is amended by inserting after paragraph (2) the following new paragraph:</text> <quoted-block id="H19C420E628F94742AFB054E4FD81E742" style="OLC"> <paragraph id="H14F4F5CEA185425EB76E8C151A605FCE"><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="HE7699744FDE446E88D638EDAB3F363F8"><enum>(b)</enum><header>No common interest required for pooled employer plans</header><text>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 id="HECE38E3FB3CA49519631BCF093975871" style="OLC"> <subparagraph id="H47A504041C504C59B4974D09BDC738B3"><enum>(C)</enum><text>A pooled employer plan shall be treated as—</text> <clause id="HCE14F3F666D0488FA773EBF2DE9213D5"><enum>(i)</enum><text>a single employee pension benefit plan or single pension plan; and</text> </clause><clause id="H26BB8E83B717421C9B3AA46EC633BD4D"><enum>(ii)</enum><text>a plan to which section 210(a) applies.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H68AD91941D7C414E811C8690CDB4FBF3"><enum>(c)</enum><header>Pooled employer plan and provider defined</header> <paragraph id="HCF3D0EE192A04C79ACFDF0FAA919196A"><enum>(1)</enum><header>In general</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 by adding at the end the following:</text> <quoted-block id="H6D1161BCD169425C998999CFD6585C26" style="OLC"> <paragraph id="HDF04A6D59BC14DA7BC6EB12C31A6F0A8"><enum>(43)</enum><header>Pooled employer plan</header> <subparagraph id="H741F0AE45A5C4D4FBA4EFEFA28555D4F"><enum>(A)</enum><header>In general</header><text>The term <term>pooled employer plan</term> means a plan—</text> <clause id="H4E4ED627A41D4801BFB938CDA79DB86E"><enum>(i)</enum><text>which is an individual account plan established or maintained for the purpose of providing benefits to the employees of 2 or more employers;</text> </clause><clause id="HA1DC202318E340AFAEC13AF9B5812A10"><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="H6E9A07D8E0E2486D9CB3C37FBDFB1CE8"><enum>(iii)</enum><text>the terms of which meet the requirements of subparagraph (B).</text> </clause><continuation-text continuation-text-level="subparagraph">Such term shall not include a plan maintained by employers which have a common interest other than having adopted the plan.</continuation-text></subparagraph><subparagraph id="HFEC01BC3D68443738221E506885244D6"><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="HFDA039F11723450EAD7789FC2D885875"><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="HC880EF1E01344859A8DE95D9BEF39A65"><enum>(ii)</enum><text>designate one or more trustees meeting the requirements of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(a)(2)</external-xref> of the Internal Revenue Code of 1986 (other than an employer in the plan) to be responsible for collecting contributions to, and holding the assets of, the plan and require such trustees to implement written contribution collection procedures that are reasonable, diligent, and systematic;</text> </clause><clause id="HAE03CE61207A45CEABD8B30E5B9EA82D"><enum>(iii)</enum><text>provide that each employer in the plan retains fiduciary responsibility for—</text> <subclause id="HFCABE3A273324EFCAA55AAE25A36FEB1"><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="HC8CBE0B2E49A4A5EB0EE1E37A71786AD"><enum>(II)</enum><text>to the extent not otherwise delegated to another fiduciary by the pooled plan provider and subject to the provisions of section 404(c), the investment and management of the portion of the plan’s assets attributable to the employees of the employer (or beneficiaries of such employees);</text> </subclause></clause><clause id="HCDF43FF68647444382A712B70942C457"><enum>(iv)</enum><text>provide that employers in the plan, and participants and beneficiaries, are not subject to unreasonable restrictions, fees, or penalties with regard to ceasing participation, receipt of distributions, or otherwise transferring assets of the plan in accordance with section 208 or paragraph (44)(C)(i)(II);</text> </clause><clause id="H643DC6FF68F64215AE8C3424BD82E2F8"><enum>(v)</enum><text>require—</text> <subclause id="HBE2075ABE4014676980DB3F5F37D5B04"><enum>(I)</enum><text>the pooled plan provider to provide to employers in the plan any disclosures or other information which the Secretary may require, including any disclosures or other information to facilitate the selection or any monitoring of the pooled plan provider by employers in the plan; and</text> </subclause><subclause id="H2D5B78DEAB8F4862B38A4D9B7D3470C5"><enum>(II)</enum><text>each employer in the plan to take such actions as the Secretary or the pooled plan provider determines are necessary to administer the plan or for the plan to meet any requirement applicable under this Act or the Internal Revenue Code of 1986 to a plan described in section 401(a) of such Code or to a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof), whichever is applicable, including providing any disclosures or other information which the Secretary may require or which the pooled plan provider otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements; and</text> </subclause></clause><clause id="H5B187AC38ABE4BCF82E7D2988E75A74F"><enum>(vi)</enum><text>provide that any disclosure or other information required to be provided under clause (v) may be provided in electronic form and will be designed to ensure only reasonable costs are imposed on pooled plan providers and employers in the plan.</text> </clause></subparagraph><subparagraph id="H6E9A290D055144B199A4CA468F1AD819"><enum>(C)</enum><header>Exceptions</header><text>The term <term>pooled employer plan</term> does not include—</text> <clause id="HFB2EB688D375402F8360171A8608F6DA"><enum>(i)</enum><text>a multiemployer plan; or</text> </clause><clause id="HECD3D5CB9E4A4BF0A6DA207626183AD5"><enum>(ii)</enum><text>a plan established before the date of the enactment of the <short-title>Setting Every Community Up for Retirement Enhancement Act of 2019</short-title> unless the plan administrator elects that the plan will be treated as a pooled employer plan and the plan meets the requirements of this title applicable to a pooled employer plan established on or after such date.</text> </clause></subparagraph><subparagraph id="HB3D17EB52CAC4958B1CF06785048F860"><enum>(D)</enum><header>Treatment of employers as plan sponsors</header><text>Except with respect to the administrative duties of the pooled plan provider described in paragraph (44)(A)(i), each employer in a pooled employer plan shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subparagraph></paragraph><paragraph id="H3A1038A2492143E09647239ABA8E1923"><enum>(44)</enum><header>Pooled plan provider</header> <subparagraph id="H5FC4E53044284928B935DBA01D3D397D"><enum>(A)</enum><header>In general</header><text>The term <term>pooled plan provider</term> means a person who—</text> <clause id="H07CE86546BB74EBC90E0906D99F39D5E"><enum>(i)</enum><text>is designated by the terms of a pooled employer plan as a named fiduciary, as the plan administrator, and as the person responsible for the performance of all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that—</text> <subclause id="H053A17B2DD3A42A5BAA9131F21454328"><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="H19A8A9AF4E5B4062BF78E1D39A12AC46"><enum>(II)</enum><text>each employer in the plan takes such actions as the Secretary or pooled plan provider determines are necessary for the plan to meet the requirements described in subclause (I), including providing the disclosures and information described in paragraph (43)(B)(v)(II);</text> </subclause></clause><clause id="H00CA3280C4D64F1A911F27C4B6B4856E"><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="H318CF4B925B648C294828E8B18F9A944"><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="H3509D51A26AF4F6AB024B72883CB6A2B"><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="H56C39D512D6A4D7C8D2490FF47CB2DE8"><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="H067680D37F2540D19E4D5BD101093ABB"><enum>(C)</enum><header>Guidance</header><text>The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this paragraph and paragraph (43), including guidance—</text> <clause id="H7603665279714F95806A55536EFF303B"><enum>(i)</enum><text>to identify the administrative duties and other actions required to be performed by a pooled plan provider under either such paragraph; and</text> </clause><clause id="H106F6A7F7D524AA1AAE87BDF6D902481"><enum>(ii)</enum><text>which requires in appropriate cases that if an employer in the plan fails to take the actions required under subparagraph (A)(i)(II)—</text> <subclause id="H17404A5EB3CB40F3BB4470B5E126808B"><enum>(I)</enum><text>the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) are transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)(8)(B)</external-xref> of the Internal Revenue Code of 1986 for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate in such guidance; and</text> </subclause><subclause id="H54D1BCF67BE24F7BA2E70F5098FB768A"><enum>(II)</enum><text>such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided in such guidance, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subclause><continuation-text continuation-text-level="clause">The Secretary shall take into account under clause (ii) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements described in subparagraph (A)(i)(II) has continued over a period of time that demonstrates a lack of commitment to compliance. The Secretary may waive the requirements of subclause (ii)(I) in appropriate circumstances if the Secretary determines it is in the best interests of the employees of the employer referred to in such clause (and the beneficiaries of such employees) to retain the assets in the plan with respect to which the employer’s failure occurred.</continuation-text></clause></subparagraph><subparagraph commented="no" id="H93093F6981184BAB8AE449810E7F6007"><enum>(D)</enum><header>Good faith compliance with law before guidance</header><text>An employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the Secretary under subparagraph (C) if, before the issuance of such guidance, the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this paragraph, or paragraph (43), to which such guidance relates.</text> </subparagraph><subparagraph id="H9F344A1BB8524E118E5D74EB9DB61B3C"><enum>(E)</enum><header>Aggregation rules</header><text>For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414</external-xref> of the Internal Revenue Code of 1986 shall be treated as one person.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H3EC18B8F12C341B6888A41643BF02BE7"><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 id="HBBB43AF40CEA4B93BC58643A5973B285"><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 id="H7682A87D4257410CBFD4D1A24CEE0C3F"><enum>(A)</enum><text>in paragraph (16)(B)—</text> <clause id="H496D74EFCF824205A0B9F346CCDBDD17"><enum>(i)</enum><text>by striking <quote>or</quote> at the end of clause (ii); and</text> </clause><clause id="H289DA6A8FA7C44CDB90D6F610E2603D4"><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 id="HA8405FBDAF3D4139A33D44B037DDD1F3"><enum>(B)</enum><text>by striking the second paragraph (41).</text> </subparagraph></paragraph></subsection><subsection id="H6A08230C73E44A2B8EEE9229EDDD3219"><enum>(d)</enum><header>Pooled employer and multiple employer plan reporting</header> <paragraph id="H37C20DE0742F4F4095C5B4250A830453"><enum>(1)</enum><header>Additional information</header><text display-inline="yes-display-inline">Section 103 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1023">29 U.S.C. 1023</external-xref>) is amended—</text> <subparagraph id="H5A9E4B3221804F3AA4C469DA5C9C2566"><enum>(A)</enum><text>in subsection (a)(1)(B), by striking <quote>applicable subsections (d), (e), and (f)</quote> and inserting <quote>applicable subsections (d), (e), (f), and (g)</quote>; and</text> </subparagraph><subparagraph id="HC0224593F8CF4BF8B16835CFBB760410"><enum>(B)</enum><text>by amending subsection (g) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H95273A3196E941AF889B4FFBE4BF1214" style="OLC"> <subsection id="H65A3D56B1F724808B099F9CE269E0858"><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="HFC02836AE5224F3DA847D99DAB456B10"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to any plan to which section 210(a) applies (including a pooled employer plan), a list of employers in the plan and a good faith estimate of the percentage of total contributions made by such employers during the plan year and the aggregate account balances attributable to each employer in the plan (determined as the sum of the account balances of the employees of such employer (and the beneficiaries of such employees)); and</text> </paragraph><paragraph id="HFBB4F1426A15483E9F4C4F65DFB3BCCF"><enum>(2)</enum><text>with respect to a pooled employer plan, the identifying information for the person designated under the terms of the plan as the pooled plan provider.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H072473CEC2BA496EBB343217C11A0D6F"><enum>(2)</enum><header>Simplified annual reports</header><text>Section 104(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(a)</external-xref>) is amended by striking paragraph (2)(A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HFD204B3198024560BC58C97AC5E74984" style="OLC"> <paragraph id="H92FD750B78C7482D98661D26BDC42728" indent="up1"><enum>(2)</enum> <subparagraph commented="no" display-inline="yes-display-inline" id="H2D743A59BAC24F3FA98E6C45D088FB6D"><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="H5DAAC0DCC6F24D7DAE0FC60D2403DEB2" indent="up1"><enum>(i)</enum><text>covers fewer than 100 participants; or</text> </clause><clause id="H75323B18846D4260B40CE426B9B2F79A" indent="up1"><enum>(ii)</enum><text>is a plan described in section 210(a) that covers fewer than 1,000 participants, but only if no single employer in the plan has 100 or more participants covered by the plan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H3611440B7AB24955BFC9E475E07D267A"><enum>(e)</enum><header>Effective date</header> <paragraph id="HCB634D368D7F4E50BEBB8F04077BA235"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2020.</text> </paragraph><paragraph id="H348358B3E4664982B3D006B2E3C04DEB"><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="H929701449E86466EBAB4083B1E52CE7F"><enum>102.</enum><header>Increase in 10 percent cap for automatic enrollment safe harbor after 1st plan year</header> <subsection id="HF23E3A48F9C14B4883D8C0FE5E0DB76F"><enum>(a)</enum><header>In general</header><text><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>does not exceed 10 percent</quote> and inserting <quote>does not exceed 15 percent (10 percent during the period described in subclause (I))</quote>.</text> </subsection><subsection id="HFA8A7B0B54444313A4743EA3850E52FD"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2019.</text> </subsection></section><section id="H6E7072D759C8431C98636BF8A7FD1A49"><enum>103.</enum><header>Rules relating to election of safe harbor <enum-in-header>401(k)</enum-in-header> status</header> <subsection commented="no" id="HDA54F520FA894F76B6EC603B4F0A0B8E"><enum>(a)</enum><header>Limitation of annual safe harbor notice to matching contribution plans</header> <paragraph commented="no" id="HE3CFF4D2571042A3AD4D279765CF24B1"><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="H07DF1C530EA64B5A99E79F285EC41D04" style="OLC"> <clause commented="no" id="H8829514FE9F54582ABC33B9148C4B7D2"><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="H69A60339FBE6407984679A6AD8985B7A"><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="HE1184E803DA74FD7AA2BD8A1C92CFCA9"><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="HDFB9B75AE34D4C5995D92AE7DAF7B577" style="OLC"> <subparagraph commented="no" id="H8DB6C4666CB74B6AB9280BEAA2033D20" indent="down1"><enum>(i)</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="H59A7C65374B548C4A8016418AABF81A1" indent="down1"><enum>(ii)</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="HFE069D5DC6EE43F99609A8C211D34626"><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="HCE97E0693C7F4D98926BDBC53776AE20" style="OLC"> <subparagraph commented="no" id="H0D1C37567E96406BAE5AF3CA726CEE5F"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="H88A4A44BF3B7475699FDB143BC8FD152"><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="H47AFF0E33E314C8E9F40735C66022A10"><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="HA627E409B25B491AA8900DC8DC7B82AC"><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="H1ED8D288378D45F3B55DBD32AF41E22E"><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="HFCB5D0CAD2A8425BAA4FFC8116D524AC"><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="HC27C13F28540413B97825C1080150DA4"><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="H8ACC36E3371F424CBBFC60F73FBE0637" style="OLC"> <subparagraph commented="no" id="HCC30020B3C9246F2B2E3A68C977ACF4C"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="H262CA6EB6DE441AC8AB80D6D724B822E"><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="H66435B4CB25445628FCC7D498EE10B42"><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="HA1DF4811EE44426291544B8A75E84CBD"><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="H5E6F6C261AF84DB992159F0F1F6B18FA"><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="H323A26655CD74BD797483FB3EADDC0CC"><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="H5B0C5829D0B14F1A8FC5F63F059C0AB3"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2019.</text> </subsection></section><section id="H521D90192BDC4062B24337089D8C25F8" section-type="subsequent-section"><enum>104.</enum><header>Increase in credit limitation for small employer pension plan startup costs</header> <subsection id="H6C97FB1C3DC2437BB146437E825F1B14"><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="H798C4A4E64954C008BC2B85BC2E53803" style="OLC"> <paragraph id="H0BB60E97AC1046B59DA09DFA19460145"><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="HA0806E8AA84346F9AEC96F8BADA755A6"><enum>(A)</enum><text>$500, or</text> </subparagraph><subparagraph id="HBE5BD513AF6945399E3B924892559721"><enum>(B)</enum><text>the lesser of—</text> <clause id="H27F177CA8F1A43B6812CA518C7A9B646"><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="H77BFC87B91724CB1B285F2F7A0912925"><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="HFFFBBBD733AE4FE7ADBCD47AB56A86B2"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2019.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H215007A799DE4E90ABA1D55306AAD395"><enum>105.</enum><header>Small employer automatic enrollment credit</header> <subsection commented="no" id="H8558CB34B48E431292174F5CB2D459F1"><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="HAA60970D8D6D4C02B9892FDFE0819D2D" style="OLC"> <section commented="no" id="H10FF092541824454BFA023FE6BB69531"><enum>45T.</enum><header>Auto-enrollment option for retirement savings options provided by small employers</header> <subsection commented="no" id="H59CE6D425D574EA0ACA610E8582100BA"><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="H8C1FF41BB46143CAB804BDB8537EAD17"><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="H56C3FD5C8BDA4C4E9F58EBA920F30B69"><enum>(2)</enum><text>zero for any other taxable year.</text> </paragraph></subsection><subsection commented="no" id="H0D8B28C8A8C5427C8C6648603211A4B9"><enum>(b)</enum><header>Credit period</header><text>For purposes of subsection (a)—</text> <paragraph commented="no" id="HD9C44FD59C7D4BA69199CC0A3B499020"><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="HE5C23BAC8B1542B0BDDA8C4E5BED8D89"><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="H3965C138065F4753AD044FF4A55ED324"><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="H911A9F617FA94B61ABC8C8C4E40BCE42"><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 (31), by striking the period at the end of paragraph (32) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H5C83FF46521E4442A073A7FF7D4AAA23" style="OLC"> <paragraph commented="no" id="H55B58C203C5941FBB39AFAF2EAEFD57E"><enum>(33)</enum><text display-inline="yes-display-inline">in the case of an eligible employer (as defined in section 45T(c)), the retirement auto-enrollment credit determined under section 45T(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HA609A387E5244D2497335B383CA9C69E"><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 45S the following new item:</text> <quoted-block id="HEA08D710596E4B948F815C973B7CA374" style="OLC"> <toc> <toc-entry idref="H10FF092541824454BFA023FE6BB69531" level="section">Sec. 45T. 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="H78DCCB7503654196A5F395B1205FD362"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2019.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H941FC5967B2B47CF845E86A7BFAC7FAF"><enum>106.</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="H66D90BAD51284D10AF3D82E76A1A0F9C"><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 which is included in the individual’s gross income and paid to the individual to aid the individual in the pursuit of graduate or postdoctoral study.</quote>.</text> </subsection><subsection id="HD2F0E02072CF4976A03ECB72A7EB6DEF"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2019.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H0D097832D8054F0F85D6333B2B6E22AE"><enum>107.</enum><header>Repeal of maximum age for traditional IRA contributions</header> <subsection commented="no" display-inline="no-display-inline" id="HEF7592864F414E01B98ECBD1DFC2872A"><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 display-inline="no-display-inline" id="H6D1D618ECA1C4313BEC6AD1AF8788CB3"><enum>(b)</enum><header>Coordination with qualified charitable distributions</header><text display-inline="yes-display-inline">Add at the end of section 408(d)(8)(A) of such Code the following:</text> <quoted-block display-inline="yes-display-inline" id="H58D37B72F08D456A9591586930E2601F" style="OLC"> <text>The amount of distributions not includible in gross income by reason of the preceding sentence for a taxable year (determined without regard to this sentence) shall be reduced (but not below zero) by an amount equal to the excess of—</text><clause id="H299CAA275A974C11A33394D47E9F3104"><enum>(i)</enum><text>the aggregate amount of deductions allowed to the taxpayer under section 219 for all taxable years ending on or after the date the taxpayer attains age 70<fraction>½</fraction>, over</text> </clause><clause id="HB0DEE94A503E46F4858834C45786AF3B"><enum>(ii)</enum><text display-inline="yes-display-inline">the aggregate amount of reductions under this sentence for all taxable years preceding the current taxable year.</text></clause><after-quoted-block>. </after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HE5733D02B36D4D2492F6C0A024AC0385"><enum>(c)</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 id="HA834BB520AED4C94884D2AE1A048EFB8"><enum>(d)</enum><header>Effective date</header> <paragraph id="H226CC5A95C854D5FB338C9C7ED9794AC"><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 apply to contributions made for taxable years beginning after December 31, 2019.</text> </paragraph><paragraph id="HCA0017E85C1D4094ACA06C1CE2B3FB0E"><enum>(2)</enum><header>Subsection <enum-in-header>(b)</enum-in-header></header><text>The amendment made by subsection (b) shall apply to distributions made for taxable years beginning after December 31, 2019.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H32E4D3BB97C946DCBE4080A233B10DF1" section-type="subsequent-section"><enum>108.</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="HA2746610590B405EBA358FAEB25E9990"><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="H4CF74A800162479DBC746B125864ECDF" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="H7F0163AFE77C4D3FB51A5A524AAA6B1D"><enum>(D)</enum><header display-inline="yes-display-inline">Prohibition of loans through credit cards and other similar arrangements</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to any loan which is made through the use of any credit card or any other similar arrangement.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4B7A8300E17B45AAB915B9EA700CE0A0"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply to loans made after the date of the enactment of this Act.</text> </subsection></section><section id="H3F10D51BDB5D479091C6E3C23A81352E"><enum>109.</enum><header>Portability of lifetime income options</header> <subsection id="H40BCF5EF0E98436AB6134F5983F4502F"><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="H4AF7F52B2A544A539F7B25019B7A0341" style="OLC"> <paragraph id="HA3C1F37E8D554F33A912746451E02AF6"><enum>(38)</enum><header>Portability of lifetime income</header> <subparagraph id="H80B4C6829D2745F1986D8DFEAED80E47"><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="H82D5860CD009420F8DA61FE76A5178EE"><enum>(i)</enum><text>qualified distributions of a lifetime income investment, or</text> </clause><clause id="H81924618D3C0458FAFDFA7DFFCDD297A"><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="HEB96FB670C884608BF029DC593304B7B"><enum>(B)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <clause id="H876174ECBE5448A089A0C1EF5296A085"><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="H6800C76BF2614DDDA0C2CEC2F29A1AAD"><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="HBE406B173C26431FAAE605410D6E420F"><enum>(I)</enum><text>which are not uniformly available with respect to other investment options under the plan, and</text> </subclause><subclause id="H023092B192C743728D2769BC4EBA2F58"><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="HD5A0636D0AB9499A935F2573BC2C7A84"><enum>(iii)</enum><text>the term <term>lifetime income feature</term> means—</text> <subclause id="HE5FBCA97A9B4403AAF28758A5C144A88"><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="HC4FAB50A820F4801AEFA937DF416D1FB"><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="H9F16E60EECD5400A9E0E03814B161C8D"><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="H43295922893B4DA99BEC26AC6A758B23"><enum>(b)</enum><header>Cash or deferred arrangement</header> <paragraph id="HD325BE7E0F8E44009AAF1B3776FB9B27"><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 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="H53C97009BB4649ADB75A36DADBE4607F" style="OLC"> <subclause id="HB30ECC2AD481442BA6364A4C379651D6"><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="H83C2B44425B64519A437A4D519FCFD7E"><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="HEBCBB26C69FC4EB0833BF228AAF4989A" style="OLC"> <clause id="H499691C9E7F54EA5A2C0890DC501BA0F"><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="HB86B97C78F244D499D69E6F33B770BD2"><enum>(c)</enum><header>Section 403(<enum-in-header>b</enum-in-header>) plans</header> <paragraph id="HBFA51087B5134A4BA4E321B853FB2E99"><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="H34E5B11DC1F641308E1487DB4053C6B5" style="OLC"> <subparagraph id="HBC2C215FB79843609DFB8A9CD538656D"><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="H631A6A03D9294B08A22D9E0B6ED879F3"><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="H6C2FAB1B2A98438887AD1BA378C17DFA"><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="H647737DBB885473AA1E889DF08EE4454"><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="HF193BAA118EA4259B54C422EF81D546A" style="OLC"> <clause id="H34FDC66C6EA14CAFA12B95ABEF6870B9"><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="HA422B367A63D4668849832EA3EAE2590"><enum>(I)</enum><text>the employee dies,</text> </subclause><subclause id="H8AC8623935C5457E844F911E97AFA639"><enum>(II)</enum><text>the employee attains age 59½,</text> </subclause><subclause id="H0A90A8DCC9E94E6E8BE12B3E83AC03D7"><enum>(III)</enum><text>the employee has a severance from employment,</text> </subclause><subclause id="H867CAE6328384F7EB593FBE23D9546D2"><enum>(IV)</enum><text>the employee becomes disabled (within the meaning of section 72(m)(7)),</text> </subclause><subclause id="H3409684212474C24B041CC547EBD750C"><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="HFD3A9607ACD84C67A0F15AB0C8E8AB4E"><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="HA00C6D788C82447CA5487F87E9D40084"><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="HA441204BD6E047929BC83A7A9DD0711A"><enum>(d)</enum><header>Eligible deferred compensation plans</header> <paragraph id="HFCFFE6A8EB864F89A3FF21B8FE556BB8"><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="HF97D2A061F034BEDBC294E9B669802C2" style="OLC"> <clause id="H2CA14F560FFB49CD91ED92B58FEA8B4B"><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="H3263889F1EC042B98C3BCF17CC8F7E95"><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="H49178B441DEF4ED1BDB4AB513B380BCA" style="OLC"> <subparagraph id="HDBDC3AB669CD4C4592522A7A495AD072"><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="H7CC48BC98F3E459C942AF969746687BC"><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, 2019.</text> </subsection></section><section id="H4790DFB3E83D45F1A2612A551C67EDED"><enum>110.</enum><header>Treatment of custodial accounts on termination of section <enum-in-header>403(b)</enum-in-header> plans</header><text display-inline="no-display-inline">Not later than six months after the date of enactment of this Act, the Secretary of the Treasury shall issue guidance to provide that, if an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A) of section 403(b)(7), the plan administrator or custodian may distribute an individual custodial account in kind to a participant or beneficiary of the plan and the distributed custodial account shall be maintained by the custodian on a tax-deferred basis as a section 403(b)(7) custodial account, similar to the treatment of fully-paid individual annuity contracts under Revenue Ruling 2011–7, until amounts are actually paid to the participant or beneficiary. The guidance shall provide further (i) that the section 403(b)(7) status of the distributed custodial account is generally maintained if the custodial account thereafter adheres to the requirements of section 403(b) that are in effect at the time of the distribution of the account and (ii) that a custodial account would not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account (but the employer would not be treated as retaining material rights simply because the custodial account was originally opened under a group contract). Such guidance shall be retroactively effective for taxable years beginning after December 31, 2008.</text> </section><section commented="no" display-inline="no-display-inline" id="HFA69D40BF55C48D9997FA544B45FF382"><enum>111.</enum><header>Clarification of retirement income account rules relating to church-controlled organizations</header> <subsection commented="no" display-inline="no-display-inline" id="HF4C009ED4E4B4282A58CB89AB6831175"><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="H6C5FE27C95914251BA8708738727EB35"><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><section id="H62F5A573E15440BD961FD2E632DBB787"><enum>112.</enum><header>Qualified cash or deferred arrangements must allow long-term employees working more than 500 but less than 1,000 hours per year to participate</header> <subsection id="HDD144B05444842A196D880A9EF583171"><enum>(a)</enum><header>Participation requirement</header> <paragraph id="H28EE23A53E28476098675DABAEDF6805"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(2)(D)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block id="H9E8944C66A0943EABDBF06F29DB9DC95" style="OLC"> <subparagraph id="HF32F85DAD3384DC5A7DAB9CEF7B6C3D4"><enum>(D)</enum><text>which does not require, as a condition of participation in the arrangement, that an employee complete a period of service with the employer (or employers) maintaining the plan extending beyond the close of the earlier of—</text> <clause id="H6B5CEA99F43F4010BE7BB1BE0C4ECF5C"><enum>(i)</enum><text>the period permitted under section 410(a)(1) (determined without regard to subparagraph (B)(i) thereof), or</text> </clause><clause id="HE548684725694BDAAC661AADBEDA5D36"><enum>(ii)</enum><text>subject to the provisions of paragraph (15), the first period of 3 consecutive 12-month periods during each of which the employee has at least 500 hours of service.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H8122872FEF5E4BCFAAF947A904FEDAFF"><enum>(2)</enum><header>Special rules</header><text>Section 401(k) of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block id="HCF0C103245B74784B93E8D5C1C626232" style="OLC"> <paragraph id="H087BE1A9103846398CB281B8854D067A"><enum>(15)</enum><header>Special rules for participation requirement for long-term, part-time workers</header><text>For purposes of paragraph (2)(D)(ii)—</text> <subparagraph id="HF9263B1A50AB45BE81271BC3C2FB18E5"><enum>(A)</enum><header>Age requirement must be met</header><text>Paragraph (2)(D)(ii) shall not apply to an employee unless the employee has met the requirement of section 410(a)(1)(A)(i) by the close of the last of the 12-month periods described in such paragraph.</text> </subparagraph><subparagraph id="HC6801A8D38224DEFB326C56D486AD3D6"><enum>(B)</enum><header>Nondiscrimination and top-heavy rules not to apply</header> <clause id="H336BA9419B0E4161A27F14A095C552A0"><enum>(i)</enum><header>Nondiscrimination rules</header><text>In the case of employees who are eligible to participate in the arrangement solely by reason of paragraph (2)(D)(ii)—</text> <subclause id="H466052458A1A436FAADCA2A907730488"><enum>(I)</enum><text>notwithstanding subsection (a)(4), an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the arrangement, and</text> </subclause><subclause id="HF99A2998F90446D89D83E20DFA8A98A4"><enum>(II)</enum><text>an employer may elect to exclude such employees from the application of subsection (a)(4), paragraphs (3), (12), and (13), subsection (m)(2), and section 410(b).</text> </subclause></clause><clause id="HE367C831FB9649BD84CEBD6DA15DBDE1"><enum>(ii)</enum><header>Top-heavy rules</header><text>An employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph (2)(D)(ii) from the application of the vesting and benefit requirements under subsections (b) and (c) of section 416.</text> </clause><clause id="HBEE0C6B24E78414A841D69903AC1FD02"><enum>(iii)</enum><header>Vesting</header><text display-inline="yes-display-inline">For purposes of determining whether an employee described in clause (i) has a nonforfeitable right to employer contributions (other than contributions described in paragraph (3)(D)(i)) under the arrangement, each 12-month period for which the employee has at least 500 hours of service shall be treated as a year of service, and section 411(a)(6) shall be applied by substituting <quote>at least 500 hours of service</quote> for <quote>more than 500 hours of service</quote> in subparagraph (A) thereof.</text> </clause><clause id="HA90FDDB011C34225944C9F0C5FA8E3D0"><enum>(iv)</enum><header>Employees who become full-time employees</header><text display-inline="yes-display-inline">This subparagraph (other than clause (iii)) shall cease to apply to any employee as of the first plan year beginning after the plan year in which the employee meets the requirements of section 410(a)(1)(A)(ii) without regard to paragraph (2)(D)(ii).</text> </clause></subparagraph><subparagraph id="HCF8A5A7B2F19466CA4A7A4D7C4F94FF8"><enum>(C)</enum><header>Exception for employees under collectively bargained plans, etc</header><text>Paragraph (2)(D)(ii) shall not apply to employees described in section 410(b)(3).</text> </subparagraph><subparagraph id="H6F98EDAC94244CEBBF8C9D5C1396B68C"><enum>(D)</enum><header>Special rules</header> <clause id="HF9770EB9A15C44FA84FD97E2BA8F492E"><enum>(i)</enum><header>Time of participation</header><text>The rules of section 410(a)(4) shall apply to an employee eligible to participate in an arrangement solely by reason of paragraph (2)(D)(ii).</text> </clause><clause id="HC55DED3AE9484080ABD306FA8E518F6A"><enum>(ii)</enum><header>12-month periods</header><text>12-month periods shall be determined in the same manner as under the last sentence of section 410(a)(3)(A).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H87F7CEC5F2824D469381EC4B3C2E54BB"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2020, except that, for purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(2)(D)(ii)</external-xref> of the Internal Revenue Code of 1986 (as added by such amendments), 12-month periods beginning before January 1, 2021, shall not be taken into account.</text> </subsection></section><section id="HCF4CC8DCF6E14B28968474EB935AB36D"><enum>113.</enum><header>Penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption</header> <subsection id="H2CA4AF7C800A44AEB99157C6998B3AE7"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/72">Section 72(t)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H324F25E141024F8085E1C890ED64C177" style="OLC"> <subparagraph id="HF02BD023909C4DF191D55A2EFB64D7B6"><enum>(H)</enum><header>Distributions from retirement plans in case of birth of child or adoption</header> <clause id="H378702C0748B49BCB51929F121235EC5"><enum>(i)</enum><header>In general</header><text>Any qualified birth or adoption distribution.</text> </clause><clause id="H6CD72C25CF194E9C8306759A1E7191DD"><enum>(ii)</enum><header>Limitation</header><text>The aggregate amount which may be treated as qualified birth or adoption distributions by any individual with respect to any birth or adoption shall not exceed $5,000.</text> </clause><clause id="H946F8A9BF9F44C75835AFC3EDDE6A66E"><enum>(iii)</enum><header>Qualified birth or adoption distribution</header><text>For purposes of this subparagraph—</text> <subclause id="HCB45E676143146C2AB41D335DF4FE4FF"><enum>(I)</enum><header>In general</header><text>The term <term>qualified birth or adoption distribution</term> means any distribution from an applicable eligible retirement plan to an individual if made during the 1-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible adoptee is finalized.</text> </subclause><subclause id="H82F2940BF4584B228211D54789E0C7E0"><enum>(II)</enum><header>Eligible adoptee</header><text>The term <term>eligible adoptee</term> means any individual (other than a child of the taxpayer’s spouse) who has not attained age 18 or is physically or mentally incapable of self-support.</text> </subclause></clause><clause id="H569D4DC00D23483FAA99A52505BB2C29"><enum>(iv)</enum><header>Treatment of plan distributions</header> <subclause id="HBEBFD1C06D3042A299EB4C73659AF63A"><enum>(I)</enum><header>In general</header><text>If a distribution to an individual would (without regard to clause (ii)) be a qualified birth or adoption distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $5,000.</text> </subclause><subclause id="H11C5ACABB3044B1F8C0C7680B36D2845"><enum>(II)</enum><header>Controlled group</header><text>For purposes of subclause (I), the term <term>controlled group</term> means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.</text> </subclause></clause><clause id="HC458D4524ECC44CF96D33D637485A56F"><enum>(v)</enum><header>Amount distributed may be repaid</header> <subclause id="HC95D6EE8A7844527AA5D280E9881E3E7"><enum>(I)</enum><header>In general</header><text>Any individual who receives a qualified birth or adoption distribution may make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.</text> </subclause><subclause id="H71015141865A4DFDBA88455413941E7C"><enum>(II)</enum><header>Limitation on contributions to applicable eligible retirement plans other than iras</header><text>The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of qualified birth or adoption distributions which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.</text> </subclause><subclause id="H5FDE99C7D3664B6B8768666A73876C86"><enum>(III)</enum><header>Treatment of repayments of distributions from applicable eligible retirement plans other than <enum-in-header>IRAs</enum-in-header></header><text>If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </subclause><subclause id="H9DA4C93DF41F4A74B59D1B0D127AE316"><enum>(IV)</enum><header>Treatment of repayments for distributions from iras</header><text>If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </subclause></clause><clause id="H58D9FF476BE64C6E81156537B68DC636"><enum>(vi)</enum><header>Definition and special rules</header><text>For purposes of this subparagraph—</text> <subclause id="H3BA73B292B774570A01C340975C2445F"><enum>(I)</enum><header>Applicable eligible retirement plan</header><text>The term <term>applicable eligible retirement plan</term> means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan.</text> </subclause><subclause id="HA91FBC80F33F4FD3AB980DE200240350"><enum>(II)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text>For purposes of sections 401(a)(31), 402(f), and 3405, a qualified birth or adoption distribution shall not be treated as an eligible rollover distribution.</text> </subclause><subclause id="H150DF1B967A44B40B69D68CB5773E5DE"><enum>(III)</enum><header>Taxpayer must include tin</header><text>A distribution shall not be treated as a qualified birth or adoption distribution with respect to any child or eligible adoptee unless the taxpayer includes the name, age, and TIN of such child or eligible adoptee on the taxpayer’s return of tax for the taxable year.</text> </subclause><subclause id="H9123BD0127704714911A3DC28C1DB1D9"><enum>(IV)</enum><header>Distributions treated as meeting plan distribution requirements</header><text>Any qualified birth or adoption distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE9D4B181B19F443FA9916A4BA8C1F958"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after December 31, 2019.</text> </subsection></section><section id="H9DABFE0BA0534ED28ACC7AC9F62A374E"><enum>114.</enum><header>Increase in age for required beginning date for mandatory distributions</header> <subsection id="HB33177DE0C7C4286A1BA07B2B9EBE3DE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)(9)(C)(i)(I)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>age 70<fraction>½</fraction></quote> and inserting <quote>age 72</quote>.</text> </subsection><subsection id="H56EC1C2CCC7B41C09A618E591CC370D4"><enum>(b)</enum><header>Spouse beneficiaries; special rule for owners</header><text display-inline="yes-display-inline">Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each amended by striking <quote>age 70<fraction>½</fraction></quote> and inserting <quote>age 72</quote>.</text> </subsection><subsection id="HCE5005E3AC264DB0BB4BD45DC7968024"><enum>(c)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">The last sentence of section 408(b) of such Code is amended by striking <quote>age 70<fraction>½</fraction></quote> and inserting <quote>age 72</quote>.</text> </subsection><subsection commented="no" id="HB37B784AB6E041848408B9854279E6A4"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions required to be made after December 31, 2019, with respect to individuals who attain age 70<fraction>½</fraction> after such date.</text> </subsection></section><section id="HB495C01204FE4F858CE203D2E923ABA6" section-type="subsequent-section"><enum>115.</enum><header>Special rules for minimum funding standards for community newspaper plans</header> <subsection id="H271E7FA199624117908FBBB227FCA30C"><enum>(a)</enum><header>Amendment to Internal Revenue Code of 1986</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/430">Section 430</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block act-name="" id="H6266AA3330C64D6EBDF5FB2E8CAA402C" style="OLC"> <subsection id="HEE092FDD0EEA41DCA6E72C1F04D53442"><enum>(m)</enum><header>Special rules for community newspaper plans</header> <paragraph display-inline="no-display-inline" id="HBDDDF91E0879497889ECD7047D1EB52F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The plan sponsor of a community newspaper plan under which no participant has had the participant's accrued benefit increased (whether because of service or compensation) after December 31, 2017, may elect to have the alternative standards described in paragraph (3) apply to such plan, and any plan sponsored by any member of the same controlled group.</text> </paragraph><paragraph id="HB4255323E00448B5A4FCF9C7F2A2FB53"><enum>(2)</enum><header>Election</header><text display-inline="yes-display-inline">An election under paragraph (1) shall be made at such time and in such manner as prescribed by the Secretary. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary.</text> </paragraph><paragraph id="HC98B44503F384515B1A2E144A2A7E4CF"><enum>(3)</enum><header>Alternative minimum funding standards</header><text>The alternative standards described in this paragraph are the following:</text> <subparagraph id="H19BFCA44A9DA46769ACE703F9B93ABF7"><enum>(A)</enum><header>Interest rates</header> <clause id="H09457E91324044BD880B7885B7393482"><enum>(i)</enum><header>In general</header><text>Notwithstanding subsection (h)(2)(C) and except as provided in clause (ii), the first, second, and third segment rates in effect for any month for purposes of this section shall be 8 percent.</text> </clause><clause id="HE4A8ABD93F1F4606A9CDA253BE3E0118"><enum>(ii)</enum><header>New benefit accruals</header><text display-inline="yes-display-inline">Notwithstanding subsection (h)(2), for purposes of determining the funding target and normal cost of a plan for any plan year, the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph (1) is in effect shall be determined on the basis of the United States Treasury obligation yield curve for the day that is the valuation date of such plan for such plan year.</text> </clause><clause id="HB9B1F1EC78694515862DEC114EF2BF8D"><enum>(iii)</enum><header>United States Treasury obligation yield curve</header><text>For purposes of this subsection, the term <term>United States Treasury obligation yield curve</term> means, with respect to any day, a yield curve which shall be prescribed by the Secretary for such day on interest-bearing obligations of the United States.</text> </clause></subparagraph><subparagraph id="H963C327EBE8845C684CE6820338D53D1"><enum>(B)</enum><header>Shortfall amortization base</header> <clause id="HCDAD99A845A14F3EA2560F1C8902DAAD"><enum>(i)</enum><header>Previous shortfall amortization bases</header><text>The shortfall amortization bases determined under subsection (c)(3) for all plan years preceding the first plan year to which the election under paragraph (1) applies (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero under rules similar to the rules of subsection (c)(6).</text> </clause><clause id="H055C1A61F0DA423FBA82F339BD2F952A"><enum>(ii)</enum><header>New shortfall amortization base</header><text>Notwithstanding subsection (c)(3), the shortfall amortization base for the first plan year to which the election under paragraph (1) applies shall be the funding shortfall of such plan for such plan year (determined using the interest rates as modified under subparagraph (A)).</text> </clause></subparagraph><subparagraph id="HF3A8A3DAD3014A6F80B282A442E2C511"><enum>(C)</enum><header>Determination of shortfall amortization installments</header> <clause id="H42ABF3062D4048238FC34B7E42DB7FFB"><enum>(i)</enum><header>30-year period</header><text>Subparagraphs (A) and (B) of subsection (c)(2) shall be applied by substituting <quote>30-plan-year</quote> for <quote>7-plan-year</quote> each place it appears.</text> </clause><clause id="HC8515503D0A348D487EB5125A0A0CE08"><enum>(ii)</enum><header>No special election</header><text>The election under subparagraph (D) of subsection (c)(2) shall not apply to any plan year to which the election under paragraph (1) applies.</text> </clause></subparagraph><subparagraph id="H4F374C7C59F74107B7F59A13CFD8B434"><enum>(D)</enum><header>Exemption from at-risk treatment</header><text>Subsection (i) shall not apply.</text> </subparagraph></paragraph><paragraph id="H77989E6A66EE4F018268148F8F2834D3"><enum>(4)</enum><header>Community newspaper plan</header><text>For purposes of this subsection—</text> <subparagraph id="H5AE6E820ED48455A9EA0FABB9561A720"><enum>(A)</enum><header>In general</header><text>The term <term>community newspaper plan</term> means a plan to which this section applies maintained by an employer which, as of December 31, 2017—</text> <clause id="HB4C37A57DBBA41F7B57B043DF6E11DD0"><enum>(i)</enum><text>publishes and distributes daily, either electronically or in printed form, 1 or more community newspapers in a single State,</text> </clause><clause id="H31537367CA8E4DB9A71C1B6B20FAA2D1"><enum>(ii)</enum><text>is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company,</text> </clause><clause id="HFA62C04268C9444BB3B4B323232E133B"><enum>(iii)</enum><text>is controlled, directly or indirectly—</text> <subclause id="H344D320C68BF467BB476B3CFEBEC6294"><enum>(I)</enum><text>by 1 or more persons residing primarily in the State in which the community newspaper is published,</text> </subclause><subclause id="H8983FFFB3C64433EA857F19E70D161E1"><enum>(II)</enum><text>for not less than 30 years by individuals who are members of the same family,</text> </subclause><subclause id="HF785242A950943CA9F05385482C13E02"><enum>(III)</enum><text>by a trust created or organized in the State in which the community newspaper is published, the sole trustees of which are persons described in subclause (I) or (II),</text> </subclause><subclause id="H8903628E96DB451A9ABC0B25A634169F"><enum>(IV)</enum><text>by an entity which is described in section 501(c)(3) and exempt from taxation under section 501(a), which is organized and operated in the State in which the community newspaper is published, and the primary purpose of which is to benefit communities in such State, or</text> </subclause><subclause id="H60255AA016A849A7AE1028F804E4928E"><enum>(V)</enum><text>by a combination of persons described in subclause (I), (III), or (IV), and</text> </subclause></clause><clause id="H96331E4AD6D34488AE4F3BBA14432682"><enum>(iv)</enum><text>does not control, directly or indirectly, any newspaper in any other State.</text> </clause></subparagraph><subparagraph id="H4A9F30E4B9C0478AB9CD6A24805161C7"><enum>(B)</enum><header>Community newspaper</header><text>The term <term>community newspaper</term> means a newspaper which primarily serves a metropolitan statistical area, as determined by the Office of Management and Budget, with a population of not less than 100,000.</text> </subparagraph><subparagraph id="H246214906CA74BF09EC3E1EE183DF602"><enum>(C)</enum><header>Control</header><text>A person shall be treated as controlled by another person if such other person possesses, directly or indirectly, the power to direct or cause the direction and management of such person (including the power to elect a majority of the members of the board of directors of such person) through the ownership of voting securities.</text> </subparagraph></paragraph><paragraph id="H6B0708539FFE4E8FBA7A61D762E341D5"><enum>(5)</enum><header>Controlled group</header><text>For purposes of this subsection, the term <term>controlled group</term> means all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 as of the date of the enactment of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA4369D456F9F4DC3B05E444BA3935963"><enum>(b)</enum><header>Amendment to Employee Retirement Income Security Act of 1974</header><text>Section 303 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1083">29 U.S.C. 1083</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HB8C540F4771444D5B78C8D3D43204FBC" style="OLC"> <subsection id="H74B582DDBD084A46B1B4363D03426C7E"><enum>(m)</enum><header>Special rules for community newspaper plans</header> <paragraph display-inline="no-display-inline" id="HEF7714462F174A0B868326FF5CD0B6C2"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The plan sponsor of a community newspaper plan under which no participant has had the participant's accrued benefit increased (whether because of service or compensation) after December 31, 2017, may elect to have the alternative standards described in paragraph (3) apply to such plan, and any plan sponsored by any member of the same controlled group.</text> </paragraph><paragraph id="H5C78AA7D6D264E488C9CBB89433B8320"><enum>(2)</enum><header>Election</header><text display-inline="yes-display-inline">An election under paragraph (1) shall be made at such time and in such manner as prescribed by the Secretary of the Treasury. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary of the Treasury.</text> </paragraph><paragraph id="HE4EDB494907B45A08C4FE1C7BC980355"><enum>(3)</enum><header>Alternative minimum funding standards</header><text>The alternative standards described in this paragraph are the following:</text> <subparagraph id="HDEE85B1D887E4231918ADAB45BF7851D"><enum>(A)</enum><header>Interest rates</header> <clause id="HD12A4A70FC774A4AA9FC5F9284807DD2"><enum>(i)</enum><header>In general</header><text>Notwithstanding subsection (h)(2)(C) and except as provided in clause (ii), the first, second, and third segment rates in effect for any month for purposes of this section shall be 8 percent.</text> </clause><clause id="H0DE9B38DF976497E8EA279F9336C123D"><enum>(ii)</enum><header>New benefit accruals</header><text display-inline="yes-display-inline">Notwithstanding subsection (h)(2), for purposes of determining the funding target and normal cost of a plan for any plan year, the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph (1) is in effect shall be determined on the basis of the United States Treasury obligation yield curve for the day that is the valuation date of such plan for such plan year.</text> </clause><clause id="HB00FAB468290488E95866BF228197517"><enum>(iii)</enum><header>United States Treasury obligation yield curve</header><text>For purposes of this subsection, the term <term>United States Treasury obligation yield curve</term> means, with respect to any day, a yield curve which shall be prescribed by the Secretary of the Treasury for such day on interest-bearing obligations of the United States.</text> </clause></subparagraph><subparagraph id="H76F54A39F7384E6CA689BAB669EB546F"><enum>(B)</enum><header>Shortfall amortization base</header> <clause id="H37C43DAD7E204A04953A46D9547387EE"><enum>(i)</enum><header>Previous shortfall amortization bases</header><text>The shortfall amortization bases determined under subsection (c)(3) for all plan years preceding the first plan year to which the election under paragraph (1) applies (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero under rules similar to the rules of subsection (c)(6).</text> </clause><clause id="HD17B1F5825DE4E598784E3C293FEC414"><enum>(ii)</enum><header>New shortfall amortization base</header><text>Notwithstanding subsection (c)(3), the shortfall amortization base for the first plan year to which the election under paragraph (1) applies shall be the funding shortfall of such plan for such plan year (determined using the interest rates as modified under subparagraph (A)).</text> </clause></subparagraph><subparagraph id="H2C90557E188448CDADD8ECD6C4DEF9D6"><enum>(C)</enum><header>Determination of shortfall amortization installments</header> <clause id="H1E05A86CCA984D42B2D04534D15AD6FE"><enum>(i)</enum><header>30-year period</header><text>Subparagraphs (A) and (B) of subsection (c)(2) shall be applied by substituting <quote>30-plan-year</quote> for <quote>7-plan-year</quote> each place it appears.</text> </clause><clause id="HA7C6CD93515243989C7723B1821BCF79"><enum>(ii)</enum><header>No special election</header><text>The election under subparagraph (D) of subsection (c)(2) shall not apply to any plan year to which the election under paragraph (1) applies.</text> </clause></subparagraph><subparagraph id="HF0998CED9AB84BC1B58A0ABECEAE3924"><enum>(D)</enum><header>Exemption from at-risk treatment</header><text>Subsection (i) shall not apply.</text> </subparagraph></paragraph><paragraph id="HB40D6D34662A4403AD8703D7E2421DDD"><enum>(4)</enum><header>Community newspaper plan</header><text>For purposes of this subsection—</text> <subparagraph id="HFDE3E208D66E403B920B430D78226011"><enum>(A)</enum><header>In general</header><text>The term <term>community newspaper plan</term> means a plan to which this section applies maintained by an employer which, as of December 31, 2017—</text> <clause id="H1D63A5F514524A728668483563717C70"><enum>(i)</enum><text>publishes and distributes daily, either electronically or in printed form—</text> <subclause id="HF03D5948CC1943ED9C239D71C32BFDB3"><enum>(I)</enum><text>a community newspaper, or</text> </subclause><subclause id="H788533E09A8C4D4096D93DD7B95B2434"><enum>(II)</enum><text>1 or more community newspapers in the same State,</text> </subclause></clause><clause id="H4637E9E0EACE4C0DA3A3E5B8D8FEF8F8"><enum>(ii)</enum><text>is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company,</text> </clause><clause id="HEABA5820A5AF479E82189DDF1181C51B"><enum>(iii)</enum><text>is controlled, directly or indirectly—</text> <subclause id="H85CC01756C584A2AA985BB960B921CF3"><enum>(I)</enum><text>by 1 or more persons residing primarily in the State in which the community newspaper is published,</text> </subclause><subclause id="H568C831953F045A59448E4F6E0D25763"><enum>(II)</enum><text>for not less than 30 years by individuals who are members of the same family,</text> </subclause><subclause id="H5BF8DE8E4C474F94BFB5B02677FC83ED"><enum>(III)</enum><text>by a trust created or organized in the State in which the community newspaper is published, the sole trustees of which are persons described in subclause (I) or (II),</text> </subclause><subclause id="H4BA92761B7BB4D88B865ADEC887D51FA"><enum>(IV)</enum><text>by an entity which is described in <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code, which is organized and operated in the State in which the community newspaper is published, and the primary purpose of which is to benefit communities in such State, or</text> </subclause><subclause id="H01AB5A55130645829EB314792FBD0F0C"><enum>(V)</enum><text>by a combination of persons described in subclause (I), (III), or (IV), and</text> </subclause></clause><clause id="H71251FC94E004E3EB8D51CDF272BB7D5"><enum>(iv)</enum><text>does not control, directly or indirectly, any newspaper in any other State.</text> </clause></subparagraph><subparagraph id="H9AC984C9DACF40B683531767923658F1"><enum>(B)</enum><header>Community newspaper</header><text>The term <term>community newspaper</term> means a newspaper which primarily serves a metropolitan statistical area, as determined by the Office of Management and Budget, with a population of not less than 100,000.</text> </subparagraph><subparagraph id="HC830EADBBF6C4ADE9AD17479EDE9D009"><enum>(C)</enum><header>Control</header><text>A person shall be treated as controlled by another person if such other person possesses, directly or indirectly, the power to direct or cause the direction and management of such person (including the power to elect a majority of the members of the board of directors of such person) through the ownership of voting securities.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7DEED770F7EF41D2B6639D3D7F2321CC"><enum>(5)</enum><header display-inline="yes-display-inline">Controlled group</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>controlled group</term> means all persons treated as a single employer under subsection (b), (c), (m), or (o) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414</external-xref> of the Internal Revenue Code of 1986 as of the date of the enactment of this subsection.</text> </paragraph><paragraph id="H9F9B9D5533C34B699A33C687F566F5F1"><enum>(6)</enum><header>Effect on premium rate calculation</header><text>Notwithstanding any other provision of law or any regulation issued by the Pension Benefit Guaranty Corporation, in the case of a plan for which an election is made to apply the alternative standards described in paragraph (3), the additional premium under section 4006(a)(3)(E) shall be determined as if such election had not been made.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H31F0C81FD78E4A6589BDDF72D84DEE81"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to plan years ending after December 31, 2017.</text> </subsection></section><section id="HEF49E44D05214AECAEEDE168AAA91FDD" section-type="subsequent-section"><enum>116.</enum><header>Treating excluded difficulty of care payments as compensation for determining retirement contribution limitations</header> <subsection id="H323E5441120E464081580A726BF35217"><enum>(a)</enum><header>Individual retirement accounts</header> <paragraph id="H83319A76320945E2A9545CA985C716AF"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/408">Section 408(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="HE54A993782D342E8A244C15CACCB9A7D" style="OLC"> <paragraph id="H02F293911EFA4748868FD334BCB34762"><enum>(5)</enum><header>Special rule for difficulty of care payments excluded from gross income</header><text display-inline="yes-display-inline">In the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, if—</text> <subparagraph id="HD778CD1733D34317A5DF67AD9A976BCB"><enum>(A)</enum><text>the deductible amount in effect for the taxable year under subsection (b), exceeds</text> </subparagraph><subparagraph id="H49323BDEDE894D5889A1448145D69F5D"><enum>(B)</enum><text>the amount of compensation includible in the individual’s gross income for the taxable year,</text> </subparagraph><continuation-text continuation-text-level="paragraph">the individual may elect to increase the nondeductible limit under paragraph (2) for the taxable year by an amount equal to the lesser of such excess or the amount so excluded.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H71A07AD260A846A9A9D5FB230C449552"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to contributions after the date of the enactment of this Act.</text> </paragraph></subsection><subsection id="H2CE4DAC93CE8420F9231FBEA5846FC17"><enum>(b)</enum><header>Defined contribution plans</header> <paragraph id="HEF8FC92F40ED45428ABE749BADD95E39"><enum>(1)</enum><header>In general</header><text>Section 415(c) of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H8B1AEED41B054FAFB848C82C90DC1993" style="OLC"> <paragraph id="H2C68C38C794E4236869B4AB711D7F834"><enum>(8)</enum><header>Special rule for difficulty of care payments excluded from gross income</header> <subparagraph id="HEB7417F82123457196647857D3A59D12"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (1)(B), in the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, the participant’s compensation, or earned income, as the case may be, shall be increased by the amount so excluded.</text> </subparagraph><subparagraph id="HA2E4D17526E14A5C8F97269476C5D2ED"><enum>(B)</enum><header>Contributions allocable to difficulty of care payments treated as after-tax</header><text>Any contribution by the participant which is allowable due to such increase—</text> <clause id="H89F3AE74C2EC454DABAF584ABAB7FFF3"><enum>(i)</enum><text>shall be treated for purposes of this title as investment in the contract, and</text> </clause><clause id="H7F92691580494FC2A3F1F1BFE41D1AA5"><enum>(ii)</enum><text>shall not cause a plan (and any arrangement which is part of such plan) to be treated as failing to meet any requirements of this chapter solely by reason of allowing any such contributions.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H49D9F3D715FE426CAAC8F814889514D0"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to plan years beginning after December 31, 2015.</text> </paragraph></subsection></section>

116 HR 1994 : Setting Every Community Up for Retirement Enhancement Act of 2019 U.S. House of Representatives 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

Setting Every Community Up for Retirement Enhancement Act of 2019

. (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; pooled employer plans.

Sec. 102. Increase in 10 percent cap for automatic enrollment safe harbor after 1st plan year.

Sec. 103. Rules relating to election of safe harbor 401(k) status.

Sec. 104. Increase in credit limitation for small employer pension plan startup costs.

Sec. 105. Small employer automatic enrollment credit.

Sec. 106. Certain taxable non-tuition fellowship and stipend payments treated as compensation for IRA purposes.

Sec. 107. Repeal of maximum age for traditional IRA contributions.

Sec. 108. Qualified employer plans prohibited from making loans through credit cards and other similar arrangements.

Sec. 109. Portability of lifetime income options.

Sec. 110. Treatment of custodial accounts on termination of section 403(b) plans.

Sec. 111. Clarification of retirement income account rules relating to church-controlled organizations.

Sec. 112. Qualified cash or deferred arrangements must allow long-term employees working more than 500 but less than 1,000 hours per year to participate.

Sec. 113. Penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption.

Sec. 114. Increase in age for required beginning date for mandatory distributions.

Sec. 115. Special rules for minimum funding standards for community newspaper plans.

Sec. 116. Treating excluded difficulty of care payments as compensation for determining retirement contribution limitations.

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—Other benefits

Sec. 301. Benefits provided to volunteer firefighters and emergency medical responders.

Sec. 302. Expansion of section 529 plans.

Title IV—Revenue provisions

Sec. 401. Modification of required distribution rules for designated beneficiaries.

Sec. 402. Increase in penalty for failure to file.

Sec. 403. Increased penalties for failure to file retirement plan returns.

Sec. 404. Increase information sharing to administer excise taxes.

Title V—Tax Relief For Certain Children

Sec. 501. Modification of rules relating to the taxation of unearned income of certain children.

<enum>I</enum><header>Expanding and preserving retirement savings</header> <section id="H51D76EE5FFB84D868B84080FBCEC9D58"><enum>101.</enum><header>Multiple employer plans; pooled employer plans</header> <subsection id="HF5FA54B7CAF042A58CEB976E6B0C3711"><enum>(a)</enum><header>Qualification requirements</header> <paragraph id="H57AF6E16FB3E497DB0FF9AE35DBC361E"><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 id="H220A962E2EC8458886C197B128BF3009" style="OLC"> <subsection id="H6FECCAAC6CDB454F81C9B043D9FA4318"><enum>(e)</enum><header>Application of qualification requirements for certain multiple employer plans with pooled plan providers</header> <paragraph id="H47B0BDA866C04E4386420A211F4877B3"><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="HDA7FBD7D82DA48C6AEE7C759060EA056"><enum>(A)</enum><text>is maintained by employers which have a common interest other than having adopted the plan, or</text> </subparagraph><subparagraph id="H738BC7F1BBEA49D0BEDCB7D0C4953C40"><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="HAD74BA9AF8384DEF8E586170BA7FE4A9"><enum>(2)</enum><header>Limitations</header> <subparagraph id="HD7278CE083F84B3BB3D03A1261B5D477"><enum>(A)</enum><header>In general</header><text>Paragraph (1) shall not apply to any plan unless the terms of the plan provide that in the case of any employer in the plan failing to take the actions described in paragraph (1)—</text> <clause id="H9010028E38C3469080764434FEF80C6F"><enum>(i)</enum><text>the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) will be transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in section 402(c)(8)(B) for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate, unless the Secretary determines it is in the best interests of the employees of such employer (and the beneficiaries of such employees) to retain the assets in the plan, and</text> </clause><clause id="H21280B7F2A854F178D3B0302B6DD23D0"><enum>(ii)</enum><text>such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided by the Secretary, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).</text> </clause></subparagraph><subparagraph id="H0144D0A553A34917B2C8770B097DD208"><enum>(B)</enum><header>Failures by pooled plan providers</header><text>If the pooled plan provider of a plan described in paragraph (1)(B) does not perform substantially all of the administrative duties which are required of the provider under paragraph (3)(A)(i) for any plan year, the Secretary may provide that the determination as to whether the plan meets the requirements under this title applicable to a plan described in section 401(a) or to a plan that consists of individual retirement accounts described in section 408 (including by reason of subsection (c) thereof), whichever is applicable, shall be made in the same manner as would be made without regard to paragraph (1).</text> </subparagraph></paragraph><paragraph id="HD4FC9B4EF9864D2BA6EB213C4FA8B76C"><enum>(3)</enum><header>Pooled plan provider</header> <subparagraph id="H4E15053D16C54F9594B0771C2DA3A444"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the term <term>pooled plan provider</term> means, with respect to any plan, a person who—</text> <clause id="H6DC44E271F0845298A178690E555C496"><enum>(i)</enum><text>is designated by the terms of the plan as a named fiduciary (within the meaning of section 402(a)(2) of the Employee Retirement Income Security Act of 1974), as the plan administrator, and as the person responsible to perform all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that—</text> <subclause id="H76AD6BF4B7A042E3AE180EDB53C4CEA1"><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="H106F8659AD4A4EEBAD7808C5CA2E6963"><enum>(II)</enum><text>each employer in the plan takes such actions as the Secretary or such person determines are necessary for the plan to meet the requirements described in subclause (I), including providing to such person any disclosures or other information which the Secretary may require or which such person otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements,</text> </subclause></clause><clause id="H0FC6891593F7493AB8AFA2DF08A54C42"><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 id="HFCC928EEB43846BABD9307D4AE7F593D"><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 id="H5FA88BA82B1D4288838C03D3188E2F65"><enum>(iv)</enum><text>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 id="H26070ACEE07447C1823DE4CC9BC9C823"><enum>(B)</enum><header>Audits, examinations and investigations</header><text>The Secretary may perform audits, examinations, and investigations of pooled plan providers as may be necessary to enforce and carry out the purposes of this subsection.</text> </subparagraph><subparagraph id="H36EE4E47A5EE408E94F6994429282D27"><enum>(C)</enum><header>Aggregation rules</header><text>For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one person.</text> </subparagraph><subparagraph id="H520B48C477CA44F6910C5CD0985DD7FE"><enum>(D)</enum><header>Treatment of employers as plan sponsors</header><text>Except with respect to the administrative duties of the pooled plan provider described in subparagraph (A)(i), each employer in a plan which has a pooled plan provider shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subparagraph></paragraph><paragraph id="HD6F9842409E046EF8FF59ACBEE7A9AE3"><enum>(4)</enum><header>Guidance</header> <subparagraph id="H0675F0853AE04FFB9488AFC754B59C3A"><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="H7F6FA561C7CF426D9FC8BAEDECFFB018"><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="HF9496098CB4945398D6442131B80CA98"><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 employer in the plan and the assets and liabilities of the plan attributable to employees of such employer (or beneficiaries of such employees), and</text> </clause><clause id="H8A93F405849F4EDCBD6BCC0C63FB14ED"><enum>(iii)</enum><text>identifying appropriate cases to which the rules of paragraph (2)(A) will apply to employers in the plan failing to take the actions described in paragraph (1).</text> </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 demonstrates a lack of commitment to compliance.</continuation-text></subparagraph><subparagraph commented="no" id="H3D989AD822464876917F6D25C36465D3"><enum>(B)</enum><header>Good faith compliance with law before guidance</header><text>An employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the Secretary under this paragraph if, before the issuance of such guidance, the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this subsection to which such guidance relates.</text> </subparagraph></paragraph><paragraph id="H2F60AB876B4546319CF979F9EEE54034"><enum>(5)</enum><header>Model plan</header><text>The Secretary shall publish model plan language which meets the requirements of this subsection and of paragraphs (43) and (44) of section 3 of the Employee Retirement Income Security Act of 1974 and which may be adopted in order for a plan to be treated as a plan described in paragraph (1)(B).</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H1177EAC093C648DBA0F82F908E5FCE85"><enum>(2)</enum><header>Conforming amendment</header><text>Section 413(c)(2) of such Code is amended by striking <quote>section 401(a)</quote> and inserting <quote>sections 401(a) and 408(c)</quote>.</text> </paragraph><paragraph id="H10E1CB1B4D14467399AEC8F07DEA3247"><enum>(3)</enum><header>Technical amendment</header><text>Section 408(c) of such Code is amended by inserting after paragraph (2) the following new paragraph:</text> <quoted-block id="H19C420E628F94742AFB054E4FD81E742" style="OLC"> <paragraph id="H14F4F5CEA185425EB76E8C151A605FCE"><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="HE7699744FDE446E88D638EDAB3F363F8"><enum>(b)</enum><header>No common interest required for pooled employer plans</header><text>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 id="HECE38E3FB3CA49519631BCF093975871" style="OLC"> <subparagraph id="H47A504041C504C59B4974D09BDC738B3"><enum>(C)</enum><text>A pooled employer plan shall be treated as—</text> <clause id="HCE14F3F666D0488FA773EBF2DE9213D5"><enum>(i)</enum><text>a single employee pension benefit plan or single pension plan; and</text> </clause><clause id="H26BB8E83B717421C9B3AA46EC633BD4D"><enum>(ii)</enum><text>a plan to which section 210(a) applies.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H68AD91941D7C414E811C8690CDB4FBF3"><enum>(c)</enum><header>Pooled employer plan and provider defined</header> <paragraph id="HCF3D0EE192A04C79ACFDF0FAA919196A"><enum>(1)</enum><header>In general</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 by adding at the end the following:</text> <quoted-block id="H6D1161BCD169425C998999CFD6585C26" style="OLC"> <paragraph id="HDF04A6D59BC14DA7BC6EB12C31A6F0A8"><enum>(43)</enum><header>Pooled employer plan</header> <subparagraph id="H741F0AE45A5C4D4FBA4EFEFA28555D4F"><enum>(A)</enum><header>In general</header><text>The term <term>pooled employer plan</term> means a plan—</text> <clause id="H4E4ED627A41D4801BFB938CDA79DB86E"><enum>(i)</enum><text>which is an individual account plan established or maintained for the purpose of providing benefits to the employees of 2 or more employers;</text> </clause><clause id="HA1DC202318E340AFAEC13AF9B5812A10"><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="H6E9A07D8E0E2486D9CB3C37FBDFB1CE8"><enum>(iii)</enum><text>the terms of which meet the requirements of subparagraph (B).</text> </clause><continuation-text continuation-text-level="subparagraph">Such term shall not include a plan maintained by employers which have a common interest other than having adopted the plan.</continuation-text></subparagraph><subparagraph id="HFEC01BC3D68443738221E506885244D6"><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="HFDA039F11723450EAD7789FC2D885875"><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="HC880EF1E01344859A8DE95D9BEF39A65"><enum>(ii)</enum><text>designate one or more trustees meeting the requirements of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(a)(2)</external-xref> of the Internal Revenue Code of 1986 (other than an employer in the plan) to be responsible for collecting contributions to, and holding the assets of, the plan and require such trustees to implement written contribution collection procedures that are reasonable, diligent, and systematic;</text> </clause><clause id="HAE03CE61207A45CEABD8B30E5B9EA82D"><enum>(iii)</enum><text>provide that each employer in the plan retains fiduciary responsibility for—</text> <subclause id="HFCABE3A273324EFCAA55AAE25A36FEB1"><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="HC8CBE0B2E49A4A5EB0EE1E37A71786AD"><enum>(II)</enum><text>to the extent not otherwise delegated to another fiduciary by the pooled plan provider and subject to the provisions of section 404(c), the investment and management of the portion of the plan’s assets attributable to the employees of the employer (or beneficiaries of such employees);</text> </subclause></clause><clause id="HCDF43FF68647444382A712B70942C457"><enum>(iv)</enum><text>provide that employers in the plan, and participants and beneficiaries, are not subject to unreasonable restrictions, fees, or penalties with regard to ceasing participation, receipt of distributions, or otherwise transferring assets of the plan in accordance with section 208 or paragraph (44)(C)(i)(II);</text> </clause><clause id="H643DC6FF68F64215AE8C3424BD82E2F8"><enum>(v)</enum><text>require—</text> <subclause id="HBE2075ABE4014676980DB3F5F37D5B04"><enum>(I)</enum><text>the pooled plan provider to provide to employers in the plan any disclosures or other information which the Secretary may require, including any disclosures or other information to facilitate the selection or any monitoring of the pooled plan provider by employers in the plan; and</text> </subclause><subclause id="H2D5B78DEAB8F4862B38A4D9B7D3470C5"><enum>(II)</enum><text>each employer in the plan to take such actions as the Secretary or the pooled plan provider determines are necessary to administer the plan or for the plan to meet any requirement applicable under this Act or the Internal Revenue Code of 1986 to a plan described in section 401(a) of such Code or to a plan that consists of individual retirement accounts described in section 408 of such Code (including by reason of subsection (c) thereof), whichever is applicable, including providing any disclosures or other information which the Secretary may require or which the pooled plan provider otherwise determines are necessary to administer the plan or to allow the plan to meet such requirements; and</text> </subclause></clause><clause id="H5B187AC38ABE4BCF82E7D2988E75A74F"><enum>(vi)</enum><text>provide that any disclosure or other information required to be provided under clause (v) may be provided in electronic form and will be designed to ensure only reasonable costs are imposed on pooled plan providers and employers in the plan.</text> </clause></subparagraph><subparagraph id="H6E9A290D055144B199A4CA468F1AD819"><enum>(C)</enum><header>Exceptions</header><text>The term <term>pooled employer plan</term> does not include—</text> <clause id="HFB2EB688D375402F8360171A8608F6DA"><enum>(i)</enum><text>a multiemployer plan; or</text> </clause><clause id="HECD3D5CB9E4A4BF0A6DA207626183AD5"><enum>(ii)</enum><text>a plan established before the date of the enactment of the <short-title>Setting Every Community Up for Retirement Enhancement Act of 2019</short-title> unless the plan administrator elects that the plan will be treated as a pooled employer plan and the plan meets the requirements of this title applicable to a pooled employer plan established on or after such date.</text> </clause></subparagraph><subparagraph id="HB3D17EB52CAC4958B1CF06785048F860"><enum>(D)</enum><header>Treatment of employers as plan sponsors</header><text>Except with respect to the administrative duties of the pooled plan provider described in paragraph (44)(A)(i), each employer in a pooled employer plan shall be treated as the plan sponsor with respect to the portion of the plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subparagraph></paragraph><paragraph id="H3A1038A2492143E09647239ABA8E1923"><enum>(44)</enum><header>Pooled plan provider</header> <subparagraph id="H5FC4E53044284928B935DBA01D3D397D"><enum>(A)</enum><header>In general</header><text>The term <term>pooled plan provider</term> means a person who—</text> <clause id="H07CE86546BB74EBC90E0906D99F39D5E"><enum>(i)</enum><text>is designated by the terms of a pooled employer plan as a named fiduciary, as the plan administrator, and as the person responsible for the performance of all administrative duties (including conducting proper testing with respect to the plan and the employees of each employer in the plan) which are reasonably necessary to ensure that—</text> <subclause id="H053A17B2DD3A42A5BAA9131F21454328"><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="H19A8A9AF4E5B4062BF78E1D39A12AC46"><enum>(II)</enum><text>each employer in the plan takes such actions as the Secretary or pooled plan provider determines are necessary for the plan to meet the requirements described in subclause (I), including providing the disclosures and information described in paragraph (43)(B)(v)(II);</text> </subclause></clause><clause id="H00CA3280C4D64F1A911F27C4B6B4856E"><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="H318CF4B925B648C294828E8B18F9A944"><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="H3509D51A26AF4F6AB024B72883CB6A2B"><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="H56C39D512D6A4D7C8D2490FF47CB2DE8"><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="H067680D37F2540D19E4D5BD101093ABB"><enum>(C)</enum><header>Guidance</header><text>The Secretary shall issue such guidance as the Secretary determines appropriate to carry out this paragraph and paragraph (43), including guidance—</text> <clause id="H7603665279714F95806A55536EFF303B"><enum>(i)</enum><text>to identify the administrative duties and other actions required to be performed by a pooled plan provider under either such paragraph; and</text> </clause><clause id="H106F6A7F7D524AA1AAE87BDF6D902481"><enum>(ii)</enum><text>which requires in appropriate cases that if an employer in the plan fails to take the actions required under subparagraph (A)(i)(II)—</text> <subclause id="H17404A5EB3CB40F3BB4470B5E126808B"><enum>(I)</enum><text>the assets of the plan attributable to employees of such employer (or beneficiaries of such employees) are transferred to a plan maintained only by such employer (or its successor), to an eligible retirement plan as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(c)(8)(B)</external-xref> of the Internal Revenue Code of 1986 for each individual whose account is transferred, or to any other arrangement that the Secretary determines is appropriate in such guidance; and</text> </subclause><subclause id="H54D1BCF67BE24F7BA2E70F5098FB768A"><enum>(II)</enum><text>such employer (and not the plan with respect to which the failure occurred or any other employer in such plan) shall, except to the extent provided in such guidance, be liable for any liabilities with respect to such plan attributable to employees of such employer (or beneficiaries of such employees).</text> </subclause><continuation-text continuation-text-level="clause">The Secretary shall take into account under clause (ii) whether the failure of an employer or pooled plan provider to provide any disclosures or other information, or to take any other action, necessary to administer a plan or to allow a plan to meet requirements described in subparagraph (A)(i)(II) has continued over a period of time that demonstrates a lack of commitment to compliance. The Secretary may waive the requirements of subclause (ii)(I) in appropriate circumstances if the Secretary determines it is in the best interests of the employees of the employer referred to in such clause (and the beneficiaries of such employees) to retain the assets in the plan with respect to which the employer’s failure occurred.</continuation-text></clause></subparagraph><subparagraph commented="no" id="H93093F6981184BAB8AE449810E7F6007"><enum>(D)</enum><header>Good faith compliance with law before guidance</header><text>An employer or pooled plan provider shall not be treated as failing to meet a requirement of guidance issued by the Secretary under subparagraph (C) if, before the issuance of such guidance, the employer or pooled plan provider complies in good faith with a reasonable interpretation of the provisions of this paragraph, or paragraph (43), to which such guidance relates.</text> </subparagraph><subparagraph id="H9F344A1BB8524E118E5D74EB9DB61B3C"><enum>(E)</enum><header>Aggregation rules</header><text>For purposes of this paragraph, in determining whether a person meets the requirements of this paragraph to be a pooled plan provider with respect to any plan, all persons who perform services for the plan and who are treated as a single employer under subsection (b), (c), (m), or (o) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414</external-xref> of the Internal Revenue Code of 1986 shall be treated as one person.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H3EC18B8F12C341B6888A41643BF02BE7"><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 id="HBBB43AF40CEA4B93BC58643A5973B285"><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 id="H7682A87D4257410CBFD4D1A24CEE0C3F"><enum>(A)</enum><text>in paragraph (16)(B)—</text> <clause id="H496D74EFCF824205A0B9F346CCDBDD17"><enum>(i)</enum><text>by striking <quote>or</quote> at the end of clause (ii); and</text> </clause><clause id="H289DA6A8FA7C44CDB90D6F610E2603D4"><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 id="HA8405FBDAF3D4139A33D44B037DDD1F3"><enum>(B)</enum><text>by striking the second paragraph (41).</text> </subparagraph></paragraph></subsection><subsection id="H6A08230C73E44A2B8EEE9229EDDD3219"><enum>(d)</enum><header>Pooled employer and multiple employer plan reporting</header> <paragraph id="H37C20DE0742F4F4095C5B4250A830453"><enum>(1)</enum><header>Additional information</header><text display-inline="yes-display-inline">Section 103 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1023">29 U.S.C. 1023</external-xref>) is amended—</text> <subparagraph id="H5A9E4B3221804F3AA4C469DA5C9C2566"><enum>(A)</enum><text>in subsection (a)(1)(B), by striking <quote>applicable subsections (d), (e), and (f)</quote> and inserting <quote>applicable subsections (d), (e), (f), and (g)</quote>; and</text> </subparagraph><subparagraph id="HC0224593F8CF4BF8B16835CFBB760410"><enum>(B)</enum><text>by amending subsection (g) to read as follows:</text> <quoted-block display-inline="no-display-inline" id="H95273A3196E941AF889B4FFBE4BF1214" style="OLC"> <subsection id="H65A3D56B1F724808B099F9CE269E0858"><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="HFC02836AE5224F3DA847D99DAB456B10"><enum>(1)</enum><text display-inline="yes-display-inline">with respect to any plan to which section 210(a) applies (including a pooled employer plan), a list of employers in the plan and a good faith estimate of the percentage of total contributions made by such employers during the plan year and the aggregate account balances attributable to each employer in the plan (determined as the sum of the account balances of the employees of such employer (and the beneficiaries of such employees)); and</text> </paragraph><paragraph id="HFBB4F1426A15483E9F4C4F65DFB3BCCF"><enum>(2)</enum><text>with respect to a pooled employer plan, the identifying information for the person designated under the terms of the plan as the pooled plan provider.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph></paragraph><paragraph id="H072473CEC2BA496EBB343217C11A0D6F"><enum>(2)</enum><header>Simplified annual reports</header><text>Section 104(a) of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1024">29 U.S.C. 1024(a)</external-xref>) is amended by striking paragraph (2)(A) and inserting the following:</text> <quoted-block display-inline="no-display-inline" id="HFD204B3198024560BC58C97AC5E74984" style="OLC"> <paragraph id="H92FD750B78C7482D98661D26BDC42728" indent="up1"><enum>(2)</enum> <subparagraph commented="no" display-inline="yes-display-inline" id="H2D743A59BAC24F3FA98E6C45D088FB6D"><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="H5DAAC0DCC6F24D7DAE0FC60D2403DEB2" indent="up1"><enum>(i)</enum><text>covers fewer than 100 participants; or</text> </clause><clause id="H75323B18846D4260B40CE426B9B2F79A" indent="up1"><enum>(ii)</enum><text>is a plan described in section 210(a) that covers fewer than 1,000 participants, but only if no single employer in the plan has 100 or more participants covered by the plan.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H3611440B7AB24955BFC9E475E07D267A"><enum>(e)</enum><header>Effective date</header> <paragraph id="HCB634D368D7F4E50BEBB8F04077BA235"><enum>(1)</enum><header>In general</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2020.</text> </paragraph><paragraph id="H348358B3E4664982B3D006B2E3C04DEB"><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="H929701449E86466EBAB4083B1E52CE7F"><enum>102.</enum><header>Increase in 10 percent cap for automatic enrollment safe harbor after 1st plan year</header> <subsection id="HF23E3A48F9C14B4883D8C0FE5E0DB76F"><enum>(a)</enum><header>In general</header><text><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>does not exceed 10 percent</quote> and inserting <quote>does not exceed 15 percent (10 percent during the period described in subclause (I))</quote>.</text> </subsection><subsection id="HFA8A7B0B54444313A4743EA3850E52FD"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2019.</text> </subsection></section><section id="H6E7072D759C8431C98636BF8A7FD1A49"><enum>103.</enum><header>Rules relating to election of safe harbor <enum-in-header>401(k)</enum-in-header> status</header> <subsection commented="no" id="HDA54F520FA894F76B6EC603B4F0A0B8E"><enum>(a)</enum><header>Limitation of annual safe harbor notice to matching contribution plans</header> <paragraph commented="no" id="HE3CFF4D2571042A3AD4D279765CF24B1"><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="H07DF1C530EA64B5A99E79F285EC41D04" style="OLC"> <clause commented="no" id="H8829514FE9F54582ABC33B9148C4B7D2"><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="H69A60339FBE6407984679A6AD8985B7A"><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="HE1184E803DA74FD7AA2BD8A1C92CFCA9"><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="HDFB9B75AE34D4C5995D92AE7DAF7B577" style="OLC"> <subparagraph commented="no" id="H8DB6C4666CB74B6AB9280BEAA2033D20" indent="down1"><enum>(i)</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="H59A7C65374B548C4A8016418AABF81A1" indent="down1"><enum>(ii)</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="HFE069D5DC6EE43F99609A8C211D34626"><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="HCE97E0693C7F4D98926BDBC53776AE20" style="OLC"> <subparagraph commented="no" id="H0D1C37567E96406BAE5AF3CA726CEE5F"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="H88A4A44BF3B7475699FDB143BC8FD152"><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="H47AFF0E33E314C8E9F40735C66022A10"><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="HA627E409B25B491AA8900DC8DC7B82AC"><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="H1ED8D288378D45F3B55DBD32AF41E22E"><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="HFCB5D0CAD2A8425BAA4FFC8116D524AC"><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="HC27C13F28540413B97825C1080150DA4"><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="H8ACC36E3371F424CBBFC60F73FBE0637" style="OLC"> <subparagraph commented="no" id="HCC30020B3C9246F2B2E3A68C977ACF4C"><enum>(F)</enum><header>Timing of plan amendment for employer making nonelective contributions</header> <clause commented="no" id="H262CA6EB6DE441AC8AB80D6D724B822E"><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="H66435B4CB25445628FCC7D498EE10B42"><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="HA1DF4811EE44426291544B8A75E84CBD"><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="H5E6F6C261AF84DB992159F0F1F6B18FA"><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="H323A26655CD74BD797483FB3EADDC0CC"><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="H5B0C5829D0B14F1A8FC5F63F059C0AB3"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2019.</text> </subsection></section><section id="H521D90192BDC4062B24337089D8C25F8" section-type="subsequent-section"><enum>104.</enum><header>Increase in credit limitation for small employer pension plan startup costs</header> <subsection id="H6C97FB1C3DC2437BB146437E825F1B14"><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="H798C4A4E64954C008BC2B85BC2E53803" style="OLC"> <paragraph id="H0BB60E97AC1046B59DA09DFA19460145"><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="HA0806E8AA84346F9AEC96F8BADA755A6"><enum>(A)</enum><text>$500, or</text> </subparagraph><subparagraph id="HBE5BD513AF6945399E3B924892559721"><enum>(B)</enum><text>the lesser of—</text> <clause id="H27F177CA8F1A43B6812CA518C7A9B646"><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="H77BFC87B91724CB1B285F2F7A0912925"><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="HFFFBBBD733AE4FE7ADBCD47AB56A86B2"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2019.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H215007A799DE4E90ABA1D55306AAD395"><enum>105.</enum><header>Small employer automatic enrollment credit</header> <subsection commented="no" id="H8558CB34B48E431292174F5CB2D459F1"><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="HAA60970D8D6D4C02B9892FDFE0819D2D" style="OLC"> <section commented="no" id="H10FF092541824454BFA023FE6BB69531"><enum>45T.</enum><header>Auto-enrollment option for retirement savings options provided by small employers</header> <subsection commented="no" id="H59CE6D425D574EA0ACA610E8582100BA"><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="H8C1FF41BB46143CAB804BDB8537EAD17"><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="H56C3FD5C8BDA4C4E9F58EBA920F30B69"><enum>(2)</enum><text>zero for any other taxable year.</text> </paragraph></subsection><subsection commented="no" id="H0D8B28C8A8C5427C8C6648603211A4B9"><enum>(b)</enum><header>Credit period</header><text>For purposes of subsection (a)—</text> <paragraph commented="no" id="HD9C44FD59C7D4BA69199CC0A3B499020"><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="HE5C23BAC8B1542B0BDDA8C4E5BED8D89"><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="H3965C138065F4753AD044FF4A55ED324"><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="H911A9F617FA94B61ABC8C8C4E40BCE42"><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 (31), by striking the period at the end of paragraph (32) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text> <quoted-block id="H5C83FF46521E4442A073A7FF7D4AAA23" style="OLC"> <paragraph commented="no" id="H55B58C203C5941FBB39AFAF2EAEFD57E"><enum>(33)</enum><text display-inline="yes-display-inline">in the case of an eligible employer (as defined in section 45T(c)), the retirement auto-enrollment credit determined under section 45T(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HA609A387E5244D2497335B383CA9C69E"><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 45S the following new item:</text> <quoted-block id="HEA08D710596E4B948F815C973B7CA374" style="OLC"> <toc> <toc-entry idref="H10FF092541824454BFA023FE6BB69531" level="section">Sec. 45T. 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="H78DCCB7503654196A5F395B1205FD362"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2019.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H941FC5967B2B47CF845E86A7BFAC7FAF"><enum>106.</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="H66D90BAD51284D10AF3D82E76A1A0F9C"><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 which is included in the individual’s gross income and paid to the individual to aid the individual in the pursuit of graduate or postdoctoral study.</quote>.</text> </subsection><subsection id="HD2F0E02072CF4976A03ECB72A7EB6DEF"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2019.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="H0D097832D8054F0F85D6333B2B6E22AE"><enum>107.</enum><header>Repeal of maximum age for traditional IRA contributions</header> <subsection commented="no" display-inline="no-display-inline" id="HEF7592864F414E01B98ECBD1DFC2872A"><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 display-inline="no-display-inline" id="H6D1D618ECA1C4313BEC6AD1AF8788CB3"><enum>(b)</enum><header>Coordination with qualified charitable distributions</header><text display-inline="yes-display-inline">Add at the end of section 408(d)(8)(A) of such Code the following:</text> <quoted-block display-inline="yes-display-inline" id="H58D37B72F08D456A9591586930E2601F" style="OLC"> <text>The amount of distributions not includible in gross income by reason of the preceding sentence for a taxable year (determined without regard to this sentence) shall be reduced (but not below zero) by an amount equal to the excess of—</text><clause id="H299CAA275A974C11A33394D47E9F3104"><enum>(i)</enum><text>the aggregate amount of deductions allowed to the taxpayer under section 219 for all taxable years ending on or after the date the taxpayer attains age 70<fraction>½</fraction>, over</text> </clause><clause id="HB0DEE94A503E46F4858834C45786AF3B"><enum>(ii)</enum><text display-inline="yes-display-inline">the aggregate amount of reductions under this sentence for all taxable years preceding the current taxable year.</text></clause><after-quoted-block>. </after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HE5733D02B36D4D2492F6C0A024AC0385"><enum>(c)</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 id="HA834BB520AED4C94884D2AE1A048EFB8"><enum>(d)</enum><header>Effective date</header> <paragraph id="H226CC5A95C854D5FB338C9C7ED9794AC"><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 apply to contributions made for taxable years beginning after December 31, 2019.</text> </paragraph><paragraph id="HCA0017E85C1D4094ACA06C1CE2B3FB0E"><enum>(2)</enum><header>Subsection <enum-in-header>(b)</enum-in-header></header><text>The amendment made by subsection (b) shall apply to distributions made for taxable years beginning after December 31, 2019.</text> </paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H32E4D3BB97C946DCBE4080A233B10DF1" section-type="subsequent-section"><enum>108.</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="HA2746610590B405EBA358FAEB25E9990"><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="H4CF74A800162479DBC746B125864ECDF" style="OLC"> <subparagraph commented="no" display-inline="no-display-inline" id="H7F0163AFE77C4D3FB51A5A524AAA6B1D"><enum>(D)</enum><header display-inline="yes-display-inline">Prohibition of loans through credit cards and other similar arrangements</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to any loan which is made through the use of any credit card or any other similar arrangement.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="H4B7A8300E17B45AAB915B9EA700CE0A0"><enum>(b)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by subsection (a) shall apply to loans made after the date of the enactment of this Act.</text> </subsection></section><section id="H3F10D51BDB5D479091C6E3C23A81352E"><enum>109.</enum><header>Portability of lifetime income options</header> <subsection id="H40BCF5EF0E98436AB6134F5983F4502F"><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="H4AF7F52B2A544A539F7B25019B7A0341" style="OLC"> <paragraph id="HA3C1F37E8D554F33A912746451E02AF6"><enum>(38)</enum><header>Portability of lifetime income</header> <subparagraph id="H80B4C6829D2745F1986D8DFEAED80E47"><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="H82D5860CD009420F8DA61FE76A5178EE"><enum>(i)</enum><text>qualified distributions of a lifetime income investment, or</text> </clause><clause id="H81924618D3C0458FAFDFA7DFFCDD297A"><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="HEB96FB670C884608BF029DC593304B7B"><enum>(B)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <clause id="H876174ECBE5448A089A0C1EF5296A085"><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="H6800C76BF2614DDDA0C2CEC2F29A1AAD"><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="HBE406B173C26431FAAE605410D6E420F"><enum>(I)</enum><text>which are not uniformly available with respect to other investment options under the plan, and</text> </subclause><subclause id="H023092B192C743728D2769BC4EBA2F58"><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="HD5A0636D0AB9499A935F2573BC2C7A84"><enum>(iii)</enum><text>the term <term>lifetime income feature</term> means—</text> <subclause id="HE5FBCA97A9B4403AAF28758A5C144A88"><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="HC4FAB50A820F4801AEFA937DF416D1FB"><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="H9F16E60EECD5400A9E0E03814B161C8D"><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="H43295922893B4DA99BEC26AC6A758B23"><enum>(b)</enum><header>Cash or deferred arrangement</header> <paragraph id="HD325BE7E0F8E44009AAF1B3776FB9B27"><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 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="H53C97009BB4649ADB75A36DADBE4607F" style="OLC"> <subclause id="HB30ECC2AD481442BA6364A4C379651D6"><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="H83C2B44425B64519A437A4D519FCFD7E"><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="HEBCBB26C69FC4EB0833BF228AAF4989A" style="OLC"> <clause id="H499691C9E7F54EA5A2C0890DC501BA0F"><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="HB86B97C78F244D499D69E6F33B770BD2"><enum>(c)</enum><header>Section 403(<enum-in-header>b</enum-in-header>) plans</header> <paragraph id="HBFA51087B5134A4BA4E321B853FB2E99"><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="H34E5B11DC1F641308E1487DB4053C6B5" style="OLC"> <subparagraph id="HBC2C215FB79843609DFB8A9CD538656D"><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="H631A6A03D9294B08A22D9E0B6ED879F3"><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="H6C2FAB1B2A98438887AD1BA378C17DFA"><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="H647737DBB885473AA1E889DF08EE4454"><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="HF193BAA118EA4259B54C422EF81D546A" style="OLC"> <clause id="H34FDC66C6EA14CAFA12B95ABEF6870B9"><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="HA422B367A63D4668849832EA3EAE2590"><enum>(I)</enum><text>the employee dies,</text> </subclause><subclause id="H8AC8623935C5457E844F911E97AFA639"><enum>(II)</enum><text>the employee attains age 59½,</text> </subclause><subclause id="H0A90A8DCC9E94E6E8BE12B3E83AC03D7"><enum>(III)</enum><text>the employee has a severance from employment,</text> </subclause><subclause id="H867CAE6328384F7EB593FBE23D9546D2"><enum>(IV)</enum><text>the employee becomes disabled (within the meaning of section 72(m)(7)),</text> </subclause><subclause id="H3409684212474C24B041CC547EBD750C"><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="HFD3A9607ACD84C67A0F15AB0C8E8AB4E"><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="HA00C6D788C82447CA5487F87E9D40084"><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="HA441204BD6E047929BC83A7A9DD0711A"><enum>(d)</enum><header>Eligible deferred compensation plans</header> <paragraph id="HFCFFE6A8EB864F89A3FF21B8FE556BB8"><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="HF97D2A061F034BEDBC294E9B669802C2" style="OLC"> <clause id="H2CA14F560FFB49CD91ED92B58FEA8B4B"><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="H3263889F1EC042B98C3BCF17CC8F7E95"><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="H49178B441DEF4ED1BDB4AB513B380BCA" style="OLC"> <subparagraph id="HDBDC3AB669CD4C4592522A7A495AD072"><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="H7CC48BC98F3E459C942AF969746687BC"><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, 2019.</text> </subsection></section><section id="H4790DFB3E83D45F1A2612A551C67EDED"><enum>110.</enum><header>Treatment of custodial accounts on termination of section <enum-in-header>403(b)</enum-in-header> plans</header><text display-inline="no-display-inline">Not later than six months after the date of enactment of this Act, the Secretary of the Treasury shall issue guidance to provide that, if an employer terminates the plan under which amounts are contributed to a custodial account under subparagraph (A) of section 403(b)(7), the plan administrator or custodian may distribute an individual custodial account in kind to a participant or beneficiary of the plan and the distributed custodial account shall be maintained by the custodian on a tax-deferred basis as a section 403(b)(7) custodial account, similar to the treatment of fully-paid individual annuity contracts under Revenue Ruling 2011–7, until amounts are actually paid to the participant or beneficiary. The guidance shall provide further (i) that the section 403(b)(7) status of the distributed custodial account is generally maintained if the custodial account thereafter adheres to the requirements of section 403(b) that are in effect at the time of the distribution of the account and (ii) that a custodial account would not be considered distributed to the participant or beneficiary if the employer has any material retained rights under the account (but the employer would not be treated as retaining material rights simply because the custodial account was originally opened under a group contract). Such guidance shall be retroactively effective for taxable years beginning after December 31, 2008.</text> </section><section commented="no" display-inline="no-display-inline" id="HFA69D40BF55C48D9997FA544B45FF382"><enum>111.</enum><header>Clarification of retirement income account rules relating to church-controlled organizations</header> <subsection commented="no" display-inline="no-display-inline" id="HF4C009ED4E4B4282A58CB89AB6831175"><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="H6C5FE27C95914251BA8708738727EB35"><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><section id="H62F5A573E15440BD961FD2E632DBB787"><enum>112.</enum><header>Qualified cash or deferred arrangements must allow long-term employees working more than 500 but less than 1,000 hours per year to participate</header> <subsection id="HDD144B05444842A196D880A9EF583171"><enum>(a)</enum><header>Participation requirement</header> <paragraph id="H28EE23A53E28476098675DABAEDF6805"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(2)(D)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text> <quoted-block id="H9E8944C66A0943EABDBF06F29DB9DC95" style="OLC"> <subparagraph id="HF32F85DAD3384DC5A7DAB9CEF7B6C3D4"><enum>(D)</enum><text>which does not require, as a condition of participation in the arrangement, that an employee complete a period of service with the employer (or employers) maintaining the plan extending beyond the close of the earlier of—</text> <clause id="H6B5CEA99F43F4010BE7BB1BE0C4ECF5C"><enum>(i)</enum><text>the period permitted under section 410(a)(1) (determined without regard to subparagraph (B)(i) thereof), or</text> </clause><clause id="HE548684725694BDAAC661AADBEDA5D36"><enum>(ii)</enum><text>subject to the provisions of paragraph (15), the first period of 3 consecutive 12-month periods during each of which the employee has at least 500 hours of service.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H8122872FEF5E4BCFAAF947A904FEDAFF"><enum>(2)</enum><header>Special rules</header><text>Section 401(k) of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block id="HCF0C103245B74784B93E8D5C1C626232" style="OLC"> <paragraph id="H087BE1A9103846398CB281B8854D067A"><enum>(15)</enum><header>Special rules for participation requirement for long-term, part-time workers</header><text>For purposes of paragraph (2)(D)(ii)—</text> <subparagraph id="HF9263B1A50AB45BE81271BC3C2FB18E5"><enum>(A)</enum><header>Age requirement must be met</header><text>Paragraph (2)(D)(ii) shall not apply to an employee unless the employee has met the requirement of section 410(a)(1)(A)(i) by the close of the last of the 12-month periods described in such paragraph.</text> </subparagraph><subparagraph id="HC6801A8D38224DEFB326C56D486AD3D6"><enum>(B)</enum><header>Nondiscrimination and top-heavy rules not to apply</header> <clause id="H336BA9419B0E4161A27F14A095C552A0"><enum>(i)</enum><header>Nondiscrimination rules</header><text>In the case of employees who are eligible to participate in the arrangement solely by reason of paragraph (2)(D)(ii)—</text> <subclause id="H466052458A1A436FAADCA2A907730488"><enum>(I)</enum><text>notwithstanding subsection (a)(4), an employer shall not be required to make nonelective or matching contributions on behalf of such employees even if such contributions are made on behalf of other employees eligible to participate in the arrangement, and</text> </subclause><subclause id="HF99A2998F90446D89D83E20DFA8A98A4"><enum>(II)</enum><text>an employer may elect to exclude such employees from the application of subsection (a)(4), paragraphs (3), (12), and (13), subsection (m)(2), and section 410(b).</text> </subclause></clause><clause id="HE367C831FB9649BD84CEBD6DA15DBDE1"><enum>(ii)</enum><header>Top-heavy rules</header><text>An employer may elect to exclude all employees who are eligible to participate in a plan maintained by the employer solely by reason of paragraph (2)(D)(ii) from the application of the vesting and benefit requirements under subsections (b) and (c) of section 416.</text> </clause><clause id="HBEE0C6B24E78414A841D69903AC1FD02"><enum>(iii)</enum><header>Vesting</header><text display-inline="yes-display-inline">For purposes of determining whether an employee described in clause (i) has a nonforfeitable right to employer contributions (other than contributions described in paragraph (3)(D)(i)) under the arrangement, each 12-month period for which the employee has at least 500 hours of service shall be treated as a year of service, and section 411(a)(6) shall be applied by substituting <quote>at least 500 hours of service</quote> for <quote>more than 500 hours of service</quote> in subparagraph (A) thereof.</text> </clause><clause id="HA90FDDB011C34225944C9F0C5FA8E3D0"><enum>(iv)</enum><header>Employees who become full-time employees</header><text display-inline="yes-display-inline">This subparagraph (other than clause (iii)) shall cease to apply to any employee as of the first plan year beginning after the plan year in which the employee meets the requirements of section 410(a)(1)(A)(ii) without regard to paragraph (2)(D)(ii).</text> </clause></subparagraph><subparagraph id="HCF8A5A7B2F19466CA4A7A4D7C4F94FF8"><enum>(C)</enum><header>Exception for employees under collectively bargained plans, etc</header><text>Paragraph (2)(D)(ii) shall not apply to employees described in section 410(b)(3).</text> </subparagraph><subparagraph id="H6F98EDAC94244CEBBF8C9D5C1396B68C"><enum>(D)</enum><header>Special rules</header> <clause id="HF9770EB9A15C44FA84FD97E2BA8F492E"><enum>(i)</enum><header>Time of participation</header><text>The rules of section 410(a)(4) shall apply to an employee eligible to participate in an arrangement solely by reason of paragraph (2)(D)(ii).</text> </clause><clause id="HC55DED3AE9484080ABD306FA8E518F6A"><enum>(ii)</enum><header>12-month periods</header><text>12-month periods shall be determined in the same manner as under the last sentence of section 410(a)(3)(A).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H87F7CEC5F2824D469381EC4B3C2E54BB"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2020, except that, for purposes of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(2)(D)(ii)</external-xref> of the Internal Revenue Code of 1986 (as added by such amendments), 12-month periods beginning before January 1, 2021, shall not be taken into account.</text> </subsection></section><section id="HCF4CC8DCF6E14B28968474EB935AB36D"><enum>113.</enum><header>Penalty-free withdrawals from retirement plans for individuals in case of birth of child or adoption</header> <subsection id="H2CA4AF7C800A44AEB99157C6998B3AE7"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/72">Section 72(t)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text> <quoted-block id="H324F25E141024F8085E1C890ED64C177" style="OLC"> <subparagraph id="HF02BD023909C4DF191D55A2EFB64D7B6"><enum>(H)</enum><header>Distributions from retirement plans in case of birth of child or adoption</header> <clause id="H378702C0748B49BCB51929F121235EC5"><enum>(i)</enum><header>In general</header><text>Any qualified birth or adoption distribution.</text> </clause><clause id="H6CD72C25CF194E9C8306759A1E7191DD"><enum>(ii)</enum><header>Limitation</header><text>The aggregate amount which may be treated as qualified birth or adoption distributions by any individual with respect to any birth or adoption shall not exceed $5,000.</text> </clause><clause id="H946F8A9BF9F44C75835AFC3EDDE6A66E"><enum>(iii)</enum><header>Qualified birth or adoption distribution</header><text>For purposes of this subparagraph—</text> <subclause id="HCB45E676143146C2AB41D335DF4FE4FF"><enum>(I)</enum><header>In general</header><text>The term <term>qualified birth or adoption distribution</term> means any distribution from an applicable eligible retirement plan to an individual if made during the 1-year period beginning on the date on which a child of the individual is born or on which the legal adoption by the individual of an eligible adoptee is finalized.</text> </subclause><subclause id="H82F2940BF4584B228211D54789E0C7E0"><enum>(II)</enum><header>Eligible adoptee</header><text>The term <term>eligible adoptee</term> means any individual (other than a child of the taxpayer’s spouse) who has not attained age 18 or is physically or mentally incapable of self-support.</text> </subclause></clause><clause id="H569D4DC00D23483FAA99A52505BB2C29"><enum>(iv)</enum><header>Treatment of plan distributions</header> <subclause id="HBEBFD1C06D3042A299EB4C73659AF63A"><enum>(I)</enum><header>In general</header><text>If a distribution to an individual would (without regard to clause (ii)) be a qualified birth or adoption distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as a qualified birth or adoption distribution, unless the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer) to such individual exceeds $5,000.</text> </subclause><subclause id="H11C5ACABB3044B1F8C0C7680B36D2845"><enum>(II)</enum><header>Controlled group</header><text>For purposes of subclause (I), the term <term>controlled group</term> means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.</text> </subclause></clause><clause id="HC458D4524ECC44CF96D33D637485A56F"><enum>(v)</enum><header>Amount distributed may be repaid</header> <subclause id="HC95D6EE8A7844527AA5D280E9881E3E7"><enum>(I)</enum><header>In general</header><text>Any individual who receives a qualified birth or adoption distribution may make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.</text> </subclause><subclause id="H71015141865A4DFDBA88455413941E7C"><enum>(II)</enum><header>Limitation on contributions to applicable eligible retirement plans other than iras</header><text>The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of qualified birth or adoption distributions which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.</text> </subclause><subclause id="H5FDE99C7D3664B6B8768666A73876C86"><enum>(III)</enum><header>Treatment of repayments of distributions from applicable eligible retirement plans other than <enum-in-header>IRAs</enum-in-header></header><text>If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </subclause><subclause id="H9DA4C93DF41F4A74B59D1B0D127AE316"><enum>(IV)</enum><header>Treatment of repayments for distributions from iras</header><text>If a contribution is made under subclause (I) with respect to a qualified birth or adoption distribution from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text> </subclause></clause><clause id="H58D9FF476BE64C6E81156537B68DC636"><enum>(vi)</enum><header>Definition and special rules</header><text>For purposes of this subparagraph—</text> <subclause id="H3BA73B292B774570A01C340975C2445F"><enum>(I)</enum><header>Applicable eligible retirement plan</header><text>The term <term>applicable eligible retirement plan</term> means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan.</text> </subclause><subclause id="HA91FBC80F33F4FD3AB980DE200240350"><enum>(II)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text>For purposes of sections 401(a)(31), 402(f), and 3405, a qualified birth or adoption distribution shall not be treated as an eligible rollover distribution.</text> </subclause><subclause id="H150DF1B967A44B40B69D68CB5773E5DE"><enum>(III)</enum><header>Taxpayer must include tin</header><text>A distribution shall not be treated as a qualified birth or adoption distribution with respect to any child or eligible adoptee unless the taxpayer includes the name, age, and TIN of such child or eligible adoptee on the taxpayer’s return of tax for the taxable year.</text> </subclause><subclause id="H9123BD0127704714911A3DC28C1DB1D9"><enum>(IV)</enum><header>Distributions treated as meeting plan distribution requirements</header><text>Any qualified birth or adoption distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 457(d)(1)(A).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HE9D4B181B19F443FA9916A4BA8C1F958"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after December 31, 2019.</text> </subsection></section><section id="H9DABFE0BA0534ED28ACC7AC9F62A374E"><enum>114.</enum><header>Increase in age for required beginning date for mandatory distributions</header> <subsection id="HB33177DE0C7C4286A1BA07B2B9EBE3DE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)(9)(C)(i)(I)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>age 70<fraction>½</fraction></quote> and inserting <quote>age 72</quote>.</text> </subsection><subsection id="H56EC1C2CCC7B41C09A618E591CC370D4"><enum>(b)</enum><header>Spouse beneficiaries; special rule for owners</header><text display-inline="yes-display-inline">Subparagraphs (B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each amended by striking <quote>age 70<fraction>½</fraction></quote> and inserting <quote>age 72</quote>.</text> </subsection><subsection id="HCE5005E3AC264DB0BB4BD45DC7968024"><enum>(c)</enum><header>Conforming amendments</header><text display-inline="yes-display-inline">The last sentence of section 408(b) of such Code is amended by striking <quote>age 70<fraction>½</fraction></quote> and inserting <quote>age 72</quote>.</text> </subsection><subsection commented="no" id="HB37B784AB6E041848408B9854279E6A4"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions required to be made after December 31, 2019, with respect to individuals who attain age 70<fraction>½</fraction> after such date.</text> </subsection></section><section id="HB495C01204FE4F858CE203D2E923ABA6" section-type="subsequent-section"><enum>115.</enum><header>Special rules for minimum funding standards for community newspaper plans</header> <subsection id="H271E7FA199624117908FBBB227FCA30C"><enum>(a)</enum><header>Amendment to Internal Revenue Code of 1986</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/430">Section 430</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:</text> <quoted-block act-name="" id="H6266AA3330C64D6EBDF5FB2E8CAA402C" style="OLC"> <subsection id="HEE092FDD0EEA41DCA6E72C1F04D53442"><enum>(m)</enum><header>Special rules for community newspaper plans</header> <paragraph display-inline="no-display-inline" id="HBDDDF91E0879497889ECD7047D1EB52F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The plan sponsor of a community newspaper plan under which no participant has had the participant's accrued benefit increased (whether because of service or compensation) after December 31, 2017, may elect to have the alternative standards described in paragraph (3) apply to such plan, and any plan sponsored by any member of the same controlled group.</text> </paragraph><paragraph id="HB4255323E00448B5A4FCF9C7F2A2FB53"><enum>(2)</enum><header>Election</header><text display-inline="yes-display-inline">An election under paragraph (1) shall be made at such time and in such manner as prescribed by the Secretary. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary.</text> </paragraph><paragraph id="HC98B44503F384515B1A2E144A2A7E4CF"><enum>(3)</enum><header>Alternative minimum funding standards</header><text>The alternative standards described in this paragraph are the following:</text> <subparagraph id="H19BFCA44A9DA46769ACE703F9B93ABF7"><enum>(A)</enum><header>Interest rates</header> <clause id="H09457E91324044BD880B7885B7393482"><enum>(i)</enum><header>In general</header><text>Notwithstanding subsection (h)(2)(C) and except as provided in clause (ii), the first, second, and third segment rates in effect for any month for purposes of this section shall be 8 percent.</text> </clause><clause id="HE4A8ABD93F1F4606A9CDA253BE3E0118"><enum>(ii)</enum><header>New benefit accruals</header><text display-inline="yes-display-inline">Notwithstanding subsection (h)(2), for purposes of determining the funding target and normal cost of a plan for any plan year, the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph (1) is in effect shall be determined on the basis of the United States Treasury obligation yield curve for the day that is the valuation date of such plan for such plan year.</text> </clause><clause id="HB9B1F1EC78694515862DEC114EF2BF8D"><enum>(iii)</enum><header>United States Treasury obligation yield curve</header><text>For purposes of this subsection, the term <term>United States Treasury obligation yield curve</term> means, with respect to any day, a yield curve which shall be prescribed by the Secretary for such day on interest-bearing obligations of the United States.</text> </clause></subparagraph><subparagraph id="H963C327EBE8845C684CE6820338D53D1"><enum>(B)</enum><header>Shortfall amortization base</header> <clause id="HCDAD99A845A14F3EA2560F1C8902DAAD"><enum>(i)</enum><header>Previous shortfall amortization bases</header><text>The shortfall amortization bases determined under subsection (c)(3) for all plan years preceding the first plan year to which the election under paragraph (1) applies (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero under rules similar to the rules of subsection (c)(6).</text> </clause><clause id="H055C1A61F0DA423FBA82F339BD2F952A"><enum>(ii)</enum><header>New shortfall amortization base</header><text>Notwithstanding subsection (c)(3), the shortfall amortization base for the first plan year to which the election under paragraph (1) applies shall be the funding shortfall of such plan for such plan year (determined using the interest rates as modified under subparagraph (A)).</text> </clause></subparagraph><subparagraph id="HF3A8A3DAD3014A6F80B282A442E2C511"><enum>(C)</enum><header>Determination of shortfall amortization installments</header> <clause id="H42ABF3062D4048238FC34B7E42DB7FFB"><enum>(i)</enum><header>30-year period</header><text>Subparagraphs (A) and (B) of subsection (c)(2) shall be applied by substituting <quote>30-plan-year</quote> for <quote>7-plan-year</quote> each place it appears.</text> </clause><clause id="HC8515503D0A348D487EB5125A0A0CE08"><enum>(ii)</enum><header>No special election</header><text>The election under subparagraph (D) of subsection (c)(2) shall not apply to any plan year to which the election under paragraph (1) applies.</text> </clause></subparagraph><subparagraph id="H4F374C7C59F74107B7F59A13CFD8B434"><enum>(D)</enum><header>Exemption from at-risk treatment</header><text>Subsection (i) shall not apply.</text> </subparagraph></paragraph><paragraph id="H77989E6A66EE4F018268148F8F2834D3"><enum>(4)</enum><header>Community newspaper plan</header><text>For purposes of this subsection—</text> <subparagraph id="H5AE6E820ED48455A9EA0FABB9561A720"><enum>(A)</enum><header>In general</header><text>The term <term>community newspaper plan</term> means a plan to which this section applies maintained by an employer which, as of December 31, 2017—</text> <clause id="HB4C37A57DBBA41F7B57B043DF6E11DD0"><enum>(i)</enum><text>publishes and distributes daily, either electronically or in printed form, 1 or more community newspapers in a single State,</text> </clause><clause id="H31537367CA8E4DB9A71C1B6B20FAA2D1"><enum>(ii)</enum><text>is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company,</text> </clause><clause id="HFA62C04268C9444BB3B4B323232E133B"><enum>(iii)</enum><text>is controlled, directly or indirectly—</text> <subclause id="H344D320C68BF467BB476B3CFEBEC6294"><enum>(I)</enum><text>by 1 or more persons residing primarily in the State in which the community newspaper is published,</text> </subclause><subclause id="H8983FFFB3C64433EA857F19E70D161E1"><enum>(II)</enum><text>for not less than 30 years by individuals who are members of the same family,</text> </subclause><subclause id="HF785242A950943CA9F05385482C13E02"><enum>(III)</enum><text>by a trust created or organized in the State in which the community newspaper is published, the sole trustees of which are persons described in subclause (I) or (II),</text> </subclause><subclause id="H8903628E96DB451A9ABC0B25A634169F"><enum>(IV)</enum><text>by an entity which is described in section 501(c)(3) and exempt from taxation under section 501(a), which is organized and operated in the State in which the community newspaper is published, and the primary purpose of which is to benefit communities in such State, or</text> </subclause><subclause id="H60255AA016A849A7AE1028F804E4928E"><enum>(V)</enum><text>by a combination of persons described in subclause (I), (III), or (IV), and</text> </subclause></clause><clause id="H96331E4AD6D34488AE4F3BBA14432682"><enum>(iv)</enum><text>does not control, directly or indirectly, any newspaper in any other State.</text> </clause></subparagraph><subparagraph id="H4A9F30E4B9C0478AB9CD6A24805161C7"><enum>(B)</enum><header>Community newspaper</header><text>The term <term>community newspaper</term> means a newspaper which primarily serves a metropolitan statistical area, as determined by the Office of Management and Budget, with a population of not less than 100,000.</text> </subparagraph><subparagraph id="H246214906CA74BF09EC3E1EE183DF602"><enum>(C)</enum><header>Control</header><text>A person shall be treated as controlled by another person if such other person possesses, directly or indirectly, the power to direct or cause the direction and management of such person (including the power to elect a majority of the members of the board of directors of such person) through the ownership of voting securities.</text> </subparagraph></paragraph><paragraph id="H6B0708539FFE4E8FBA7A61D762E341D5"><enum>(5)</enum><header>Controlled group</header><text>For purposes of this subsection, the term <term>controlled group</term> means all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 as of the date of the enactment of this subsection.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA4369D456F9F4DC3B05E444BA3935963"><enum>(b)</enum><header>Amendment to Employee Retirement Income Security Act of 1974</header><text>Section 303 of the Employee Retirement Income Security Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/29/1083">29 U.S.C. 1083</external-xref>) is amended by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HB8C540F4771444D5B78C8D3D43204FBC" style="OLC"> <subsection id="H74B582DDBD084A46B1B4363D03426C7E"><enum>(m)</enum><header>Special rules for community newspaper plans</header> <paragraph display-inline="no-display-inline" id="HEF7714462F174A0B868326FF5CD0B6C2"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The plan sponsor of a community newspaper plan under which no participant has had the participant's accrued benefit increased (whether because of service or compensation) after December 31, 2017, may elect to have the alternative standards described in paragraph (3) apply to such plan, and any plan sponsored by any member of the same controlled group.</text> </paragraph><paragraph id="H5C78AA7D6D264E488C9CBB89433B8320"><enum>(2)</enum><header>Election</header><text display-inline="yes-display-inline">An election under paragraph (1) shall be made at such time and in such manner as prescribed by the Secretary of the Treasury. Such election, once made with respect to a plan year, shall apply to all subsequent plan years unless revoked with the consent of the Secretary of the Treasury.</text> </paragraph><paragraph id="HE4EDB494907B45A08C4FE1C7BC980355"><enum>(3)</enum><header>Alternative minimum funding standards</header><text>The alternative standards described in this paragraph are the following:</text> <subparagraph id="HDEE85B1D887E4231918ADAB45BF7851D"><enum>(A)</enum><header>Interest rates</header> <clause id="HD12A4A70FC774A4AA9FC5F9284807DD2"><enum>(i)</enum><header>In general</header><text>Notwithstanding subsection (h)(2)(C) and except as provided in clause (ii), the first, second, and third segment rates in effect for any month for purposes of this section shall be 8 percent.</text> </clause><clause id="H0DE9B38DF976497E8EA279F9336C123D"><enum>(ii)</enum><header>New benefit accruals</header><text display-inline="yes-display-inline">Notwithstanding subsection (h)(2), for purposes of determining the funding target and normal cost of a plan for any plan year, the present value of any benefits accrued or earned under the plan for a plan year with respect to which an election under paragraph (1) is in effect shall be determined on the basis of the United States Treasury obligation yield curve for the day that is the valuation date of such plan for such plan year.</text> </clause><clause id="HB00FAB468290488E95866BF228197517"><enum>(iii)</enum><header>United States Treasury obligation yield curve</header><text>For purposes of this subsection, the term <term>United States Treasury obligation yield curve</term> means, with respect to any day, a yield curve which shall be prescribed by the Secretary of the Treasury for such day on interest-bearing obligations of the United States.</text> </clause></subparagraph><subparagraph id="H76F54A39F7384E6CA689BAB669EB546F"><enum>(B)</enum><header>Shortfall amortization base</header> <clause id="H37C43DAD7E204A04953A46D9547387EE"><enum>(i)</enum><header>Previous shortfall amortization bases</header><text>The shortfall amortization bases determined under subsection (c)(3) for all plan years preceding the first plan year to which the election under paragraph (1) applies (and all shortfall amortization installments determined with respect to such bases) shall be reduced to zero under rules similar to the rules of subsection (c)(6).</text> </clause><clause id="HD17B1F5825DE4E598784E3C293FEC414"><enum>(ii)</enum><header>New shortfall amortization base</header><text>Notwithstanding subsection (c)(3), the shortfall amortization base for the first plan year to which the election under paragraph (1) applies shall be the funding shortfall of such plan for such plan year (determined using the interest rates as modified under subparagraph (A)).</text> </clause></subparagraph><subparagraph id="H2C90557E188448CDADD8ECD6C4DEF9D6"><enum>(C)</enum><header>Determination of shortfall amortization installments</header> <clause id="H1E05A86CCA984D42B2D04534D15AD6FE"><enum>(i)</enum><header>30-year period</header><text>Subparagraphs (A) and (B) of subsection (c)(2) shall be applied by substituting <quote>30-plan-year</quote> for <quote>7-plan-year</quote> each place it appears.</text> </clause><clause id="HA7C6CD93515243989C7723B1821BCF79"><enum>(ii)</enum><header>No special election</header><text>The election under subparagraph (D) of subsection (c)(2) shall not apply to any plan year to which the election under paragraph (1) applies.</text> </clause></subparagraph><subparagraph id="HF0998CED9AB84BC1B58A0ABECEAE3924"><enum>(D)</enum><header>Exemption from at-risk treatment</header><text>Subsection (i) shall not apply.</text> </subparagraph></paragraph><paragraph id="HB40D6D34662A4403AD8703D7E2421DDD"><enum>(4)</enum><header>Community newspaper plan</header><text>For purposes of this subsection—</text> <subparagraph id="HFDE3E208D66E403B920B430D78226011"><enum>(A)</enum><header>In general</header><text>The term <term>community newspaper plan</term> means a plan to which this section applies maintained by an employer which, as of December 31, 2017—</text> <clause id="H1D63A5F514524A728668483563717C70"><enum>(i)</enum><text>publishes and distributes daily, either electronically or in printed form—</text> <subclause id="HF03D5948CC1943ED9C239D71C32BFDB3"><enum>(I)</enum><text>a community newspaper, or</text> </subclause><subclause id="H788533E09A8C4D4096D93DD7B95B2434"><enum>(II)</enum><text>1 or more community newspapers in the same State,</text> </subclause></clause><clause id="H4637E9E0EACE4C0DA3A3E5B8D8FEF8F8"><enum>(ii)</enum><text>is not a company the stock of which is publicly traded (on a stock exchange or in an over-the-counter market), and is not controlled, directly or indirectly, by such a company,</text> </clause><clause id="HEABA5820A5AF479E82189DDF1181C51B"><enum>(iii)</enum><text>is controlled, directly or indirectly—</text> <subclause id="H85CC01756C584A2AA985BB960B921CF3"><enum>(I)</enum><text>by 1 or more persons residing primarily in the State in which the community newspaper is published,</text> </subclause><subclause id="H568C831953F045A59448E4F6E0D25763"><enum>(II)</enum><text>for not less than 30 years by individuals who are members of the same family,</text> </subclause><subclause id="H5BF8DE8E4C474F94BFB5B02677FC83ED"><enum>(III)</enum><text>by a trust created or organized in the State in which the community newspaper is published, the sole trustees of which are persons described in subclause (I) or (II),</text> </subclause><subclause id="H4BA92761B7BB4D88B865ADEC887D51FA"><enum>(IV)</enum><text>by an entity which is described in <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code, which is organized and operated in the State in which the community newspaper is published, and the primary purpose of which is to benefit communities in such State, or</text> </subclause><subclause id="H01AB5A55130645829EB314792FBD0F0C"><enum>(V)</enum><text>by a combination of persons described in subclause (I), (III), or (IV), and</text> </subclause></clause><clause id="H71251FC94E004E3EB8D51CDF272BB7D5"><enum>(iv)</enum><text>does not control, directly or indirectly, any newspaper in any other State.</text> </clause></subparagraph><subparagraph id="H9AC984C9DACF40B683531767923658F1"><enum>(B)</enum><header>Community newspaper</header><text>The term <term>community newspaper</term> means a newspaper which primarily serves a metropolitan statistical area, as determined by the Office of Management and Budget, with a population of not less than 100,000.</text> </subparagraph><subparagraph id="HC830EADBBF6C4ADE9AD17479EDE9D009"><enum>(C)</enum><header>Control</header><text>A person shall be treated as controlled by another person if such other person possesses, directly or indirectly, the power to direct or cause the direction and management of such person (including the power to elect a majority of the members of the board of directors of such person) through the ownership of voting securities.</text> </subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H7DEED770F7EF41D2B6639D3D7F2321CC"><enum>(5)</enum><header display-inline="yes-display-inline">Controlled group</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <term>controlled group</term> means all persons treated as a single employer under subsection (b), (c), (m), or (o) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414</external-xref> of the Internal Revenue Code of 1986 as of the date of the enactment of this subsection.</text> </paragraph><paragraph id="H9F9B9D5533C34B699A33C687F566F5F1"><enum>(6)</enum><header>Effect on premium rate calculation</header><text>Notwithstanding any other provision of law or any regulation issued by the Pension Benefit Guaranty Corporation, in the case of a plan for which an election is made to apply the alternative standards described in paragraph (3), the additional premium under section 4006(a)(3)(E) shall be determined as if such election had not been made.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="H31F0C81FD78E4A6589BDDF72D84DEE81"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to plan years ending after December 31, 2017.</text> </subsection></section><section id="HEF49E44D05214AECAEEDE168AAA91FDD" section-type="subsequent-section"><enum>116.</enum><header>Treating excluded difficulty of care payments as compensation for determining retirement contribution limitations</header> <subsection id="H323E5441120E464081580A726BF35217"><enum>(a)</enum><header>Individual retirement accounts</header> <paragraph id="H83319A76320945E2A9545CA985C716AF"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/408">Section 408(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="HE54A993782D342E8A244C15CACCB9A7D" style="OLC"> <paragraph id="H02F293911EFA4748868FD334BCB34762"><enum>(5)</enum><header>Special rule for difficulty of care payments excluded from gross income</header><text display-inline="yes-display-inline">In the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, if—</text> <subparagraph id="HD778CD1733D34317A5DF67AD9A976BCB"><enum>(A)</enum><text>the deductible amount in effect for the taxable year under subsection (b), exceeds</text> </subparagraph><subparagraph id="H49323BDEDE894D5889A1448145D69F5D"><enum>(B)</enum><text>the amount of compensation includible in the individual’s gross income for the taxable year,</text> </subparagraph><continuation-text continuation-text-level="paragraph">the individual may elect to increase the nondeductible limit under paragraph (2) for the taxable year by an amount equal to the lesser of such excess or the amount so excluded.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H71A07AD260A846A9A9D5FB230C449552"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to contributions after the date of the enactment of this Act.</text> </paragraph></subsection><subsection id="H2CE4DAC93CE8420F9231FBEA5846FC17"><enum>(b)</enum><header>Defined contribution plans</header> <paragraph id="HEF8FC92F40ED45428ABE749BADD95E39"><enum>(1)</enum><header>In general</header><text>Section 415(c) of such Code is amended by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H8B1AEED41B054FAFB848C82C90DC1993" style="OLC"> <paragraph id="H2C68C38C794E4236869B4AB711D7F834"><enum>(8)</enum><header>Special rule for difficulty of care payments excluded from gross income</header> <subparagraph id="HEB7417F82123457196647857D3A59D12"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (1)(B), in the case of an individual who for a taxable year excludes from gross income under section 131 a qualified foster care payment which is a difficulty of care payment, the participant’s compensation, or earned income, as the case may be, shall be increased by the amount so excluded.</text> </subparagraph><subparagraph id="HA2E4D17526E14A5C8F97269476C5D2ED"><enum>(B)</enum><header>Contributions allocable to difficulty of care payments treated as after-tax</header><text>Any contribution by the participant which is allowable due to such increase—</text> <clause id="H89F3AE74C2EC454DABAF584ABAB7FFF3"><enum>(i)</enum><text>shall be treated for purposes of this title as investment in the contract, and</text> </clause><clause id="H7F92691580494FC2A3F1F1BFE41D1AA5"><enum>(ii)</enum><text>shall not cause a plan (and any arrangement which is part of such plan) to be treated as failing to meet any requirements of this chapter solely by reason of allowing any such contributions.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="H49D9F3D715FE426CAAC8F814889514D0"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to plan years beginning after December 31, 2015.</text> </paragraph></subsection></section><enum>II</enum><header>Administrative improvements</header> <section id="H58AA89BEDD4B4193AE59E8E19976D1DA"><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="HA61EFC6BAC6947179828898A2254310D"><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="H45379A69B88C4F3290B46FCB8B784139"><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="HD2803E0433A54C98815EA743014CBC97" style="OLC"> <paragraph id="H4439A37CB8C54E489044C29BE35D4ADF"><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="H86694862279B4C48939B6D9FE4065A55"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="HADBD3A54E1FA4422BE46455E6356B7A5" style="OLC"> <paragraph id="H5C1A1A9B6BCC4DC891062B6DB6339B80"><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="HCCCA20D393804B63AFC923A6EB5FFC37"><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, 2019.</text> </subsection></section><section id="H3ED57167FC304D70907AE15242829097" section-type="subsequent-section"><enum>202.</enum><header>Combined annual report for group of plans</header> <subsection id="H96A2F06D299846E68E9B13ED5DF8858F"><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="H6609626A0076456491A295AF3008D7FA"><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 and shall require such information as will enable a participant in a plan to identify any aggregated return or report filed with respect to the plan.</text> </subsection><subsection id="H4A40CDCC242743FA9BDA52E41B07E5A7"><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="H9E4FE07B2D074EB9A8EA17D86D14FAF8"><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="H9AF7B1B9CFA14FEFBE4A3CAA89C49E0A"><enum>(2)</enum><text>have—</text> <subparagraph id="H36E6D0FFC107413C9EDC4274A514227E"><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="H5D7846E0E67D4323B6926DB55B66C5AF"><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="H3C905A02C86143B79D7FD82E4F9C8407"><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="HEC3CF98373C244C7B5667DB752570BB0"><enum>(D)</enum><text>plan years beginning on the same date; and</text> </subparagraph></paragraph><paragraph id="HD5D33F5888DE494DAB457BDE6E3FFC42"><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="H6B0EDFF5B5A44B5BA67F53BF0D5EBFF2"><enum>(d)</enum><header>Clarification relating to electronic filing of returns for deferred compensation plans</header> <paragraph id="H1433039EE87241D48901CC6B47F0A8A1"><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="H1D0E2479A845447194047ADC49BA608C" style="OLC"> <paragraph id="H8F0432BDC8BD42AA88317356BF111D42"><enum>(6)</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="H0D78F8F23BBD4BC5BBEFFD314037338A"><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, 2019.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H47D254E862FB4A068152589F4E69CEBA"><enum>(e)</enum><header>Effective date</header><text>The modification required by subsection (a) shall be implemented not later than January 1, 2022, and shall apply to returns and reports for plan years beginning after December 31, 2021.</text> </subsection></section><section id="H422E4CAC6E7F487CBD3FCDB7DE98BB68"><enum>203.</enum><header>Disclosure regarding lifetime income</header> <subsection id="H785D8C9F7EA84DED90504467005DABEF"><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="HFE8F0918508745E1B6AC6F682F2E8CAB"><enum>(1)</enum><text>in clause (i), by striking <quote>and</quote> at the end;</text> </paragraph><paragraph id="HE8C477D4B7214F9EBC7452D9848F5814"><enum>(2)</enum><text>in clause (ii), by striking <quote>diversification.</quote> and inserting <quote>diversification, and</quote>; and</text> </paragraph><paragraph id="H975CE980687E4D0789D7B318D8E0784D"><enum>(3)</enum><text>by inserting at the end the following:</text> <quoted-block display-inline="no-display-inline" id="H37DBDA7E59CC4F17AF5C22D4971ED8E4" style="OLC"> <clause id="H1E2B01E4B6EF4788AE39578DD384DE36"><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="H8CE82137C69E4B8588DBDDAF1B50D3DE"><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="HB5670FCB3BC04927BD0F42B9C99FEB53" style="OLC"> <subparagraph id="H208545295BC94C0F873E8C0A7AF523D0"><enum>(D)</enum><header>Lifetime income disclosure</header> <clause id="H4BAD1082955940F0927EEA04E4C588F0"><enum>(i)</enum><header>In general</header> <subclause id="H2C581DC5848C47E4BFDB8539D0E765E0"><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="H67E4F738EB684E68B431F03CF35CA5E6"><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="H432D78A97FD643EE95907AB5A9913ADE"><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="H02F28CF2DC574A858A055A0856F5DB53"><enum>(ii)</enum><header>Model disclosure</header><text>Not later than 1 year after the date of the enactment of the <short-title>Setting Every Community Up for Retirement Enhancement Act of 2019</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="HDE3BA10910F1420C9FE45FB01C3EB889"><enum>(I)</enum><text>explains that the lifetime income stream equivalent is only provided as an illustration;</text> </subclause><subclause id="H127EB6F4D70C4E6AA90B4DDB63DFAB10"><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="H6396A641D89F4A009475B7756C3B03D0"><enum>(III)</enum><text>explains the assumptions upon which the lifetime income stream equivalent was determined; and</text> </subclause><subclause id="H7A33479681D246D4A504FCA23C34B28B"><enum>(IV)</enum><text>provides such other similar explanations as the Secretary considers appropriate.</text> </subclause></clause><clause id="HBEBEC33A72B648958063EE4AEB49CA99"><enum>(iii)</enum><header>Assumptions and rules</header><text>Not later than 1 year after the date of the enactment of the <short-title>Setting Every Community Up for Retirement Enhancement Act of 2019</short-title>, the Secretary shall—</text> <subclause id="HB75B1A26FB6249E2840E797F94F758E3"><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="H8BFA33129FE44AD09D7EB2308A7446D8"><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="HAAC94F7F562A47128397443372560006"><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="H9F1566AE8B804229A12ADEBCAC1D00FE"><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="HB956DCD85A184FAAA22EEB4FC6DE61AF"><enum>(I)</enum><text>interim final rules under clause (i);</text> </subclause><subclause id="H13285703AF334D88A8973DB5AA1A5848"><enum>(II)</enum><text>the model disclosure under clause (ii); or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="HAFA3DA5DA85B49E596427E2E4104B6C6"><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="HC00D24CE68804AF1B4DFB85A6312D5FC" 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="H73834A24F9B549438A03C8E64FC8BD9B" style="OLC"> <subsection id="HD4C51D2E234B49238719F433453BC7F1"><enum>(e)</enum><header>Safe harbor for annuity selection</header> <paragraph display-inline="no-display-inline" id="HE2C066FD9C1445BDAF156A216A52F6A5"><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="H88630D25A37841D68F3DF65F6B431286"><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="H27622DC32030483593B18A8624D73726"><enum>(B)</enum><text>with respect to each insurer identified under subparagraph (A)—</text> <clause id="H9CA79BCA5E6F49B6B9DCE15D8C544533"><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="HFC66BDD7AC7744699D727C1BDAEE5259"><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="HC1CCE6C9CBDE4D7D850FA1049AF4B9B8"><enum>(C)</enum><text>on the basis of such consideration, concludes that—</text> <clause id="H30C30FFC6C454658BE114BE65FC2DAC0"><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="HB040C88AFB444F5DACA7555438BE8233"><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="H2D23A2710750434AAEC5804AF734FA28"><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="HF081E69536AB433E889C8E5BC42B0C46"><enum>(A)</enum><text>the fiduciary obtains written representations from the insurer that—</text> <clause id="H934305D05308421BA4D073D96B2F838C"><enum>(i)</enum><text>the insurer is licensed to offer guaranteed retirement income contracts;</text> </clause><clause id="H9E6B3780959E46A38572163B9B5A4882"><enum>(ii)</enum><text>the insurer, at the time of selection and for each of the immediately preceding 7 plan years—</text> <subclause id="HCE4DDB5B52DE47A6B92424B7EDB8A84D"><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="HAE21E6D778924B868E20846F1A799AAC"><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="HEE22BC6FA4E848239C5AADD1B02D5494"><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="HC2491656F1BE43D8890213A6F542B7DA"><enum>(IV)</enum><text>is not operating under an order of supervision, rehabilitation, or liquidation;</text> </subclause></clause><clause id="HBC9B75FC71A5412BA2085AAF8B902278"><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="H9F649AE214564DFBB3C5286EF1CF5C21"><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="H1A36B74ADCD64191A9E6BCFA5D9A942C"><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="HED7C37ADF44044A0A7A6283E5828BB41"><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="HD14F15AE081D4462A0BFBFBCA3A8E931"><enum>(4)</enum><header>Time of selection</header> <subparagraph id="H5DA449B379B846EF86C5358D6EA0D503"><enum>(A)</enum><header>In general</header><text>For purposes of this subsection, the time of selection is—</text> <clause id="HAAF7C4C8158C4446BC91767B4B4BB657"><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="H28671D1A6A354718823A3E0AFB41BD52"><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="H669645DE3860401CA889A313BB3BEAB7"><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="H2AC8815A1004462EADD7AA5F0029319D"><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="HAB41333159B049F0A91C19AF6D1B4FAE"><enum>(6)</enum><header>Definitions</header><text>For purposes of this subsection—</text> <subparagraph id="H9803979D8A66490994523E2AD3494023"><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="HDAD1E4ABEEB54C62AFEC915B4D726FDF"><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="H72A47CEE60254D78BC3B1B52D25087B2" section-type="subsequent-section"><enum>205.</enum><header>Modification of nondiscrimination rules to protect older, longer service participants</header> <subsection commented="no" id="HEF2114973B014D1E9CA43BF8F769A59E"><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="H66627AE3768543DAA35993FCCC0DB605"><enum>(1)</enum><text>by redesignating subsection (o) as subsection (p); and</text> </paragraph><paragraph commented="no" id="HEAB6427C84864543B073722536FA2D38"><enum>(2)</enum><text>by inserting after subsection (n) the following new subsection:</text> <quoted-block id="HCA82C8B5D7CD4CC0B5658923F36D9499" style="OLC"> <subsection commented="no" id="H2D72B046956A4F149508903AE9BCB339"><enum>(o)</enum><header>Special rules for applying nondiscrimination rules to protect older, longer service and grandfathered participants</header> <paragraph commented="no" id="H719287E248494232B464A65E0E01D321"><enum>(1)</enum><header>Testing of defined benefit plans with closed classes of participants</header> <subparagraph commented="no" display-inline="no-display-inline" id="HFD8CFE89E696424DB029B43E40F2DBA6"><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="H386E26C23AB8434E846A47645404581C"><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="HF07FF92E5A5340D3803ED0EEA1BBF2A8"><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="HE38FA0811CF444CCA3B803FA7F37A89E"><enum>(iii)</enum><text>the class was closed before April 5, 2017, or the plan is described in subparagraph (C).</text> </clause></subparagraph><subparagraph commented="no" id="H0EB75A9D96A34E1CBCF9811ABB42C4A8"><enum>(B)</enum><header>Aggregate testing with defined contribution plans permitted on a benefits basis</header> <clause commented="no" id="H46EC0E9B392F42BF95CA67854F1D23C0"><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="H1500D195DAA04F688A5A5272FAEA3D86"><enum>(I)</enum><text>provides matching contributions (as defined in subsection (m)(4)(A)),</text> </subclause><subclause commented="no" id="HDF1398E11CE740DBBE5A77E06CE66108"><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="HF6097B98081F4101A5FDFC8A3B8380B0"><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="H6744C7D64B0E4427A2686ADE28787551"><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="H10EA30ED60E946ACA533E2A0F647878A"><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="HF4AA5CEEA73D4881AD4BB95D1BE3474A"><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="H384CDAFBF88F4625939DB74C9CDDC6E2"><enum>(iii)</enum><header>Plans described</header><text>A defined benefit plan is described in this clause if—</text> <subclause commented="no" id="H6910730333B24D48BEFD2715295DAF69"><enum>(I)</enum><text>the plan provides benefits to a closed class of participants,</text> </subclause><subclause commented="no" id="HFD3086EDBD684B618C2866E1E1D658C1"><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="H1BFE328B65C4409684F9312A0EFC2753"><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="H6E1BDA44D3A14AC6956063DBAC3D9DE2"><enum>(IV)</enum><text>the class was closed before April 5, 2017, or the plan is described in subparagraph (C).</text> </subclause></clause></subparagraph><subparagraph id="H7E3F5B40EB3B40B8A64038860A1ACAEB"><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="HA5E03B242CC24AE3B29C808E90F28454"><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="H085EF732822A4FCC80815E923256C773"><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="H183F29328F2947C59F4904E5697A59FF"><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="H6E4F91A1E7B04A37B9CDA4665BD8CF64"><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="H01E76D8314EB49A9AF4CB585D192888C"><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="HA940C5A5FDD84A36BFD8FEFAD054DC84"><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="H0940F4213AC54C1CA28B9C4A6ACF3D8B"><enum>(i)</enum><text>the number of participants benefitting under the plan on the date such period ends is more than 50 percent greater than the number of such participants on the first day of the plan year in which such period began, or</text> </clause><clause id="H02BE69F5E82A4CF9961A980B24C620E2"><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="HA87225D3365648A8A7DA40F5DE041DAF"><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="H1CB66DEEAB624BB9B3296688F83E4C57"><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="H493D6B82607249E89419E81A1D078656"><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="HFA2A65613534477C9FC3FCDC56BD728F"><enum>(G)</enum><header>Rules relating to average benefit</header><text>For purposes of subparagraph (E)—</text> <clause id="HB56D7F04CE514B58B28BAE3CE008A93E"><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="HF0EAEC7FB98A477BABFB2FC5BBAF125A"><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="HE5D4C143900B41EE83AE96FC8EAF89AC"><enum>(I)</enum><text>the total amount determined under section 430(b)(1)(A)(i) for all participants benefitting under the plan for the plan year in which the 5-year period described in subparagraph (E) ends, exceeds</text> </subclause><subclause id="H9CB26420728546FC9A9ADCB5014AF1FF"><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="HFDD4DC5229C34D86B8289C2722E5A851"><enum>(H)</enum><header>Treatment as single plan</header><text>For purposes of subparagraphs (E) and (G), a plan described in section 413(c) shall be treated as a single plan rather than as separate plans maintained by each employer in the plan.</text> </subparagraph><subparagraph id="H75845DD35F284C94AF2DDB71E9DFEA98"><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="H86300159341B4AAFB2DAA0136D767257"><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="H9DCC52973875492B83355A3613487958"><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="HD49B6E74A6F04F4B92B50212CDA48A5B"><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="H85282D0C93364179B9592141556CD46F"><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="H4CD8CB494F3B4ACA80B9C61952CB9F68"><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="H6FACC227E07E43ED9EBFF54B78474F3D"><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="H50E8012048A246118DFCFF3CB60BA9F5"><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="H0F507806D3EE4A209B6B4420245E0D14"><enum>(2)</enum><header>Testing of defined contribution plans</header> <subparagraph commented="no" display-inline="no-display-inline" id="HD9BC0DCEC4254D17A803BA13AAE047A8"><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="H38564FE5A38343ED99E829B2D871F731"><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="H65FAD8AFEB1C40009C07CCE5C2D44BF7"><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="HB0691D0522864BADB556F29A4C49B344"><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="H261DA17C1FAE4D7A91486AE240CF5FD3"><enum>(iv)</enum><text>the class was closed before April 5, 2017, or the defined benefit plan under clause (i) is described in paragraph (1)(C) (as applied for purposes of paragraph (1)(B)(iii)(IV)).</text> </clause></subparagraph><subparagraph commented="no" id="HF2D7C86BC88C45D29B9EDC46DA0601A4"><enum>(B)</enum><header>Aggregation with plans including matching contributions</header> <clause commented="no" id="H5A49A59958D84063920CCF5B4EBAA304"><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="HFF321402EBFB4760B50A4DE7353483D4"><enum>(I)</enum><text>provides matching contributions (as defined in subsection (m)(4)(A)),</text> </subclause><subclause commented="no" id="H1DFF5E2856BC42449CA35C9E81AB7728"><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="H9FF39D187A9C41098191639559DB813E"><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="HA1A2753A29374B3C88CD5CCBE6903D5B"><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="HF69B789107AE470DAE956A15466C840A"><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="H4815C3B80998489282A932B50E2A352E"><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="H9397B95A8C414C2B8EB71A855C7638D9"><enum>(3)</enum><header>Definitions and special rule</header><text>For purposes of this subsection—</text> <subparagraph id="H8970C5E85FD842138C8C3E0F7640FAE8"><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="HC66F29D8EF3140D78A187DD91D8AA1CD"><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="H7C34EBA222654BA4B727BDEFE54A298F"><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="HD3B603E157A64BA79967048B1164B7F6"><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="H78896C111C1F47CA93C451FA2A05186B" style="OLC"> <subparagraph id="H582DC219835642F9A65D4AA1215B7744"><enum>(I)</enum><header>Protected participants</header> <clause id="H264B2AD26CB745FB962B0CEB51A32F38"><enum>(i)</enum><header>In general</header><text>A plan shall be deemed to satisfy the requirements of subparagraph (A) if—</text> <subclause id="H5FEF896A827B41BBB68893827A4D77EB"><enum>(I)</enum><text>the plan is amended—</text> <item id="HA7DC1B9E69B8465C95BBD292CF76D9AF"><enum>(aa)</enum><text>to cease all benefit accruals, or</text> </item><item id="H7B217959EEA74EF898DED1E99B831AC5"><enum>(bb)</enum><text>to provide future benefit accruals only to a closed class of participants,</text> </item></subclause><subclause id="H5DB4A745C56A47B38D602879C05FA72F"><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="HFBC148B18DD14A2DAEF8DAC7EF0CC405"><enum>(III)</enum><text>the amendment was adopted before April 5, 2017, or the plan is described in clause (ii).</text> </subclause></clause><clause id="HBBB5B3A0B0644B8DAF0BD1B594C22375"><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="HCC690DCDB7CB48ED922A459FFA2E7D84"><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="H8243F1F0BA424400AB3089D514BF9A70"><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="H08247A76229C47FA9CB6D2FA3885F18E"><enum>(c)</enum><header>Effective date</header> <paragraph id="H8F90D46AF49645D981B981D45DE7E4FF"><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="H20D65B0671BF41E7A33A785E85CFF724"><enum>(2)</enum><header>Special rules</header> <subparagraph id="HC4CA2004319341C0A1736AA2CC007530"><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="HD4EE3E6DAB58401C9AA663FE2F6578F2"><enum>(B)</enum><header>Closed classes of participants</header><text>For purposes of paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and (2)(A)(iv) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(o)</external-xref> of the Internal Revenue Code of 1986 (as added by this section), a closed class of participants shall be treated as being closed before April 5, 2017, if the plan sponsor's intention to create such closed class is reflected in formal written documents and communicated to participants before such date.</text> </subparagraph><subparagraph id="H9F26B7C9A1544FBD8952626A41C35084"><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="H39F06286A9F5429B88CBA955DC4F1F03"><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="H3701BD3FF2484B3A84664DBBD33C8A1B"><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="HC63D74E295644B8A81444ECA8D27F02D"><enum>206.</enum><header>Modification of PBGC premiums for CSEC plans</header> <subsection id="H7A2145B70984406B821E1AEAF5B491B7"><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="H954A1F944A844E519455AF155BF4BD93"><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="H19E1D3456989430F8C231E0E6009AA79"><enum>(2)</enum><text>in clause (v), by striking <quote>or</quote> at the end;</text> </paragraph><paragraph id="H4AC391EB5516467580E0E7DF0EE78538"><enum>(3)</enum><text>in clause (vi), by striking the period at the end and inserting <quote>, or</quote>; and</text> </paragraph><paragraph id="HA85D1FE95EAA494EA4B4417FD5BEDA4C"><enum>(4)</enum><text>by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H0D430717885E47DC946EAC0D7D568AD2" style="OLC"> <clause id="H8533B75F913E436CAE7127F12AE7D84A"><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, 2018, for each individual who is a participant in such plan during the plan year an amount equal to the sum of—</text> <subclause id="HD20C9D8F5AD74DA1B8CC3CB6E2B4A51C"><enum>(I)</enum><text>the additional premium (if any) determined under subparagraph (E), and</text> </subclause><subclause id="H9CDE9B5D9FF04ED3859819C1CFF09FD7"><enum>(II)</enum><text>$19.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection><subsection id="H6D157500A27A43EBB9553F375C391D10"><enum>(b)</enum><header>Variable rate premium</header> <paragraph id="HAFBEABC14678496C999A2580CC72FCDF"><enum>(1)</enum><header>Unfunded vested benefits</header> <subparagraph id="H9167D3D16AE64624AF5982EB0A623C5A"><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="H29612A9EDCB4421CB767DB4A153EC03D" style="OLC"> <clause id="H26B35EE016494893AF58259375916495" indent="up1"><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, 2018, the excess (if any) of—</text> <subclause id="H79B4C6CE64CD47ABA5A4C901D617151A"><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="HCC53DCF9EE164469BC3412E5DE7A1174"><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="HACCA4D1788F943FAB2A5784BEFB4BB6F"><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="H34C76339531942A19468681D4F807032"><enum>(2)</enum><header>Applicable dollar amount</header> <subparagraph id="H5AD10FFB5DF5414AB0B49218088359A1"><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="HFBC15462B0BE431996BFBABA161E0FDF" style="OLC"> <subparagraph id="HF86ABDB26BFD496C926ADD0121585899"><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="H6689E5124E37420D95F538C617440C71"><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>Other benefits</header> <section commented="no" display-inline="no-display-inline" id="HC398A4454278463FBD9E1F9E44EA8F47" section-type="subsequent-section"><enum>301.</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="H3B6EDEC5F6C2413180DBC00DF0F37B1F"><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="H908801E347F349C2A0E00D0642055E6E"><enum>(b)</enum><header display-inline="yes-display-inline">Extension</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/139B">Section 139B(d)</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="HBA567E5A999E41ACAF53EB6115056784" style="OLC"> <paragraph commented="no" display-inline="no-display-inline" id="H0FD4C02C00064CA5BC7A69127135BE1F"><enum>(1)</enum><text display-inline="yes-display-inline">after December 31, 2010, and before January 1, 2020, or</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2AC46321F7284AE08E6A2DD03651FB09"><enum>(2)</enum><text display-inline="yes-display-inline">after December 31, 2020.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" display-inline="no-display-inline" id="HCFD8B31026F94BA1A19322B6F147EF23"><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, 2019.</text> </subsection></section><section id="HF1F92422250F45CD8EB38F218DE553D7"><enum>302.</enum><header>Expansion of section <enum-in-header>529</enum-in-header> plans</header> <subsection id="H846D7FD768A5463997A9E01ECFFA3B8E"><enum>(a)</enum><header>Distributions for certain expenses associated with registered apprenticeship programs</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/529">Section 529(c)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:</text> <quoted-block id="HD38A9469A20A4DA0A2DA4C95F3A74401" style="OLC"> <paragraph id="H967A5AC55FB4431FBDD3CE58FE1939F8"><enum>(8)</enum><header>Treatment of certain expenses associated with registered apprenticeship programs</header><text>Any reference in this subsection to the term <term>qualified higher education expense</term> shall include a reference to expenses for fees, books, supplies, and equipment required for the participation of a designated beneficiary in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act (<external-xref legal-doc="usc" parsable-cite="usc/29/50">29 U.S.C. 50</external-xref>).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection commented="no" id="HAAFB114007AA40FB8EB2BB00F1F46E80"><enum>(b)</enum><header>Distributions for qualified education loan repayments</header> <paragraph commented="no" id="H1D20FF66CB6E454CBA410DE0C168A514"><enum>(1)</enum><header>In general</header><text>Section 529(c) of such Code, as amended by subsection (a), is amended by adding at the end the following new paragraph:</text> <quoted-block id="H22FDEEE6A0E6440B856800E77B310857" style="OLC"> <paragraph commented="no" id="H63B475C6E34446EEAFC5C546A34A35E3"><enum>(9)</enum><header>Treatment of qualified education loan repayments</header> <subparagraph commented="no" id="H145939196DE14852AE1C87A709AF2956"><enum>(A)</enum><header>In general</header><text>Any reference in this subsection to the term <term>qualified higher education expense</term> shall include a reference to amounts paid as principal or interest on any qualified education loan (as defined in section 221(d)) of the designated beneficiary or a sibling of the designated beneficiary.</text> </subparagraph><subparagraph commented="no" id="H25D6579706744B968BC8A9197387E6B4"><enum>(B)</enum><header>Limitation</header><text>The amount of distributions treated as a qualified higher education expense under this paragraph with respect to the loans of any individual shall not exceed $10,000 (reduced by the amount of distributions so treated for all prior taxable years).</text> </subparagraph><subparagraph commented="no" id="H3F89467CE7974FD6A90F4135DA4060C4"><enum>(C)</enum><header>Special rules for siblings of the designated beneficiary</header> <clause commented="no" id="H7D0C70CEDDAF41BFB098AEE1FF8E9535"><enum>(i)</enum><header>Separate accounting</header><text>For purposes of subparagraph (B) and subsection (d), amounts treated as a qualified higher education expense with respect to the loans of a sibling of the designated beneficiary shall be taken into account with respect to such sibling and not with respect to such designated beneficiary.</text> </clause><clause commented="no" id="H6BB1EF648C5B406E946C2A682C7C4D11"><enum>(ii)</enum><header>Sibling defined</header><text>For purposes of this paragraph, the term <term>sibling</term> means an individual who bears a relationship to the designated beneficiary which is described in section 152(d)(2)(B).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="HA386D7403F1C4438A4CFFEC7D977FE54"><enum>(2)</enum><header>Coordination with deduction for student loan interest</header><text>Section 221(e)(1) of such Code is amended by adding at the end the following: <quote>The deduction otherwise allowable under subsection (a) (prior to the application of subsection (b)) to the taxpayer for any taxable year shall be reduced (but not below zero) by so much of the distributions treated as a qualified higher education expense under section 529(c)(9) with respect to loans of the taxpayer as would be includible in gross income under section 529(c)(3)(A) for such taxable year but for such treatment.</quote>.</text> </paragraph></subsection><subsection id="H45190680BCB2443CA1BF1961849383D8"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to distributions made after December 31, 2018.</text> </subsection></section><enum>IV</enum><header>Revenue provisions</header> <section commented="no" id="H084B5EBD76DF47C0B895121999E2270E"><enum>401.</enum><header>Modification of required distribution rules for designated beneficiaries</header> <subsection commented="no" id="H8914D99862714F26A131990AEF7C1843"><enum>(a)</enum><header>Modification of rules where employee dies before entire distribution</header> <paragraph commented="no" id="HB0349DEBE919406495D03D72B1605A4D"><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="H3F55376B1B7F4F1C8D567B9A3AEAF827" style="OLC"> <subparagraph id="HFB45B3586292424A9FDC5ABC46993058"><enum>(H)</enum><header>Special rules for certain defined contribution plans</header><text display-inline="yes-display-inline">In the case of a defined contribution plan, if an employee dies before the distribution of the employee’s entire interest—</text> <clause id="HA83E15CF7A2D4549B85CADB7F7C0ACA4"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Except in the case of a beneficiary who is not a designated beneficiary, subparagraph (B)(ii)—</text> <subclause id="H847174161FCF49B995A461C678E4A3C8"><enum>(I)</enum><text>shall be applied by substituting <quote>10 years</quote> for <quote>5 years</quote>, and</text> </subclause><subclause id="H2233406F9D6C433E897034A39B0FE603"><enum>(II)</enum><text display-inline="yes-display-inline">shall apply whether or not distributions of the employee’s interests have begun in accordance with subparagraph (A).</text> </subclause></clause><clause id="H5FB1BF0DEBCE4837B84974D717F703E0"><enum>(ii)</enum><header>Exception only for eligible designated beneficiaries</header><text>Subparagraph (B)(iii) shall apply only in the case of an eligible designated beneficiary.</text> </clause><clause id="HA3BA952DBC204600AC7B4D5127773E78"><enum>(iii)</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 this subparagraph applies is entirely distributed, the exception under clause (iii) shall not apply to any beneficiary of such eligible designated beneficiary and the remainder of such portion shall be distributed within 10 years after the death of such eligible designated beneficiary.</text> </clause><clause commented="no" id="H29D4A152E17C491AB9E5CC568E983F87"><enum>(iv)</enum><header>Application to certain eligible retirement plans</header><text display-inline="yes-display-inline">For purposes of applying the provisions of this subparagraph in determining amounts required to be distributed pursuant to this paragraph, all eligible retirement plans (as defined in section 402(c)(8)(B), other than a defined benefit plan described in clause (iv) or (v) thereof or a qualified trust which is a part of a defined benefit plan) shall be treated as a defined contribution plan.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph commented="no" id="H3F595D13503E4416A1BB1C5954B8F02A"><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="H80D08ACA9CD34567917D3EB570BD902E" style="OLC"> <subparagraph commented="no" id="H88CFCF50AD5C4D0EBDDA4AF93D7BD99F"><enum>(E)</enum><header>Definitions and rules relating to designated beneficiary</header><text>For purposes of this paragraph—</text> <clause commented="no" id="H4B5F113BA0D74E4E85432FED2E6E292F"><enum>(i)</enum><header>Designated beneficiary</header><text>The term <term>designated beneficiary</term> means any individual designated as a beneficiary by the employee.</text> </clause><clause commented="no" id="HAAA3E8FF614F4155969D2991F2EEEBF4"><enum>(ii)</enum><header>Eligible designated beneficiary</header><text>The term <term>eligible designated beneficiary</term> means, with respect to any employee, any designated beneficiary who is—</text> <subclause commented="no" id="H913D46762618428FA4B55F0576F8B031"><enum>(I)</enum><text>the surviving spouse of the employee,</text> </subclause><subclause commented="no" id="HEE164793B0DC440D8CBB82A50B03254F"><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="HD45448F3C6CE4A11B07081E0975C8B42"><enum>(III)</enum><text>disabled (within the meaning of section 72(m)(7)),</text> </subclause><subclause commented="no" id="H0077697B29D6488B91EB20F046BD1592"><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="H8CCAAB708CB24F379EC4DA53B75DCC62"><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="HC249642563C64E8787CF469E039B1AB4"><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 individual’s interest to which subparagraph (H)(ii) applies shall be distributed within 10 years after such date.</text> </clause><clause commented="no" id="HB0616410BC7846F58DEE254F0276F862"><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="HA1CB405DB62C4371BB9B59976A9F56DF"><enum>(3)</enum><header>Effective dates</header> <subparagraph commented="no" id="H39145D0079D14D62BC4C8D0A32A6E45C"><enum>(A)</enum><header>In general</header><text>Except as provided in this paragraph and paragraphs (4) and (5), the amendments made by this subsection shall apply to distributions with respect to employees who die after December 31, 2019.</text> </subparagraph><subparagraph id="HF5568C6B2046420DAAF38F889965DBAC"><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="H782E34679DCB48E1B211ACEAEFFC0FA5"><enum>(i)</enum><text>the later of—</text> <subclause id="HE7E40FA743F24886B0AA8CFDF0FDEB51"><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="H5B2D4143E8BA4F049D016D28C1D33F74"><enum>(II)</enum><text>December 31, 2019, or</text> </subclause></clause><clause id="H5F9310DDFDB440D9A3E3134710CB7761"><enum>(ii)</enum><text>December 31, 2021.</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="H3112101DFF314CC9811A1EA2C413B84D"><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, 2021</quote> for <quote>December 31, 2019</quote>.</text> </subparagraph></paragraph><paragraph commented="no" id="H6E7EFF983DC04F0D9C257B90A29FA732"><enum>(4)</enum><header>Exception for certain existing annuity contracts</header> <subparagraph commented="no" id="HF2B0327204CD4B8688A3003DB339F9AF"><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="H0CB42E2D5C694F358149EEF93806DB76"><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="H029920F1D9AF43C48701E298FD380DCB"><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="HEE9E6C21CCFD48C49F6B08FBB8856126"><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="H2FB627C534724C54BEF59980807758B6"><enum>(iii)</enum><text>with respect to which—</text> <subclause commented="no" id="H35ED3F5761A24D2B9DC04923FCC0A89F"><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="H1D44256AA049416D82F2149B7F0DF6D6"><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="H43834FF03F8E4C51A8B8D0A744667216"><enum>(5)</enum><header>Exception for certain beneficiaries</header> <subparagraph commented="no" id="HCCEF0B676F31442689F61B0EAA224966"><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="HDCDCC7E5B9B04B6DA8C7C2A60691E6CB"><enum>(i)</enum><text>such amendments shall apply to any beneficiary of such designated beneficiary; and</text> </clause><clause commented="no" id="HA52450D17BE845808D51603987861E66"><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)(ii)</external-xref> of the Internal Revenue Code of 1986 (as in effect after such amendments).</text> </clause></subparagraph><subparagraph commented="no" id="H98A39C97457642229D393421DFC3DCEA"><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="HE63F70EBAB094295BFDCAE19533CB48F"><enum>(b)</enum><header>Provisions relating to plan amendments</header> <paragraph id="HE76BC9B486DB47A59AEE22EBA830052F"><enum>(1)</enum><header>In general</header><text>If this subsection applies to any plan amendment—</text> <subparagraph id="H4EC4387A11B54A7AB75441E9E54B4A22"><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="H2473934B0E3F4DBF84CD58C827F65594"><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="H587D407851E1449BAAEDF7D7F4C8D42A"><enum>(2)</enum><header>Amendments to which subsection applies</header> <subparagraph id="HD898445D34E74C2099527885B8579B14"><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="H10C541C85E484837B44F55C1407CC56B"><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="HC56D240CB58C4EBCAD01E0D366818F2F"><enum>(ii)</enum><text>on or before the last day of the first plan year beginning after December 31, 2021, 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="HF0E3BEF75F9B4C3ABD01612199A631E9"><enum>(B)</enum><header>Conditions</header><text>This subsection shall not apply to any amendment unless—</text> <clause id="HBBA7CFF116AB466FB521A6DDE9B8E102"><enum>(i)</enum><text>during the period—</text> <subclause id="H207BD824923144DABFCC77E66A89BD80"><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="HD32A8D6A03434BCBBCA12B1FAE5D659E"><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="HAAA0434963724F14A9D55C0287CD4F80"><enum>(ii)</enum><text>such plan amendment applies retroactively for such period.</text> </clause></subparagraph></paragraph></subsection></section><section id="H489F024823684036824B049632DDC8CC"><enum>402.</enum><header>Increase in penalty for failure to file</header> <subsection id="H2AC35BEC59B34C4281537EDF18ADEA9F"><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 commented="no" id="H7EB0113982B84793AF39F8BC9CF8DBDB"><enum>(b)</enum><header>Inflation adjustment</header><text>Section 6651(j)(1) of such Code is amended by striking <quote>$205</quote> and inserting <quote>$400</quote>.</text> </subsection><subsection id="HF4AD3585931E4FA0A2FAEB8490DAF2CB"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to returns the due date for which (including extensions) is after December 31, 2019.</text> </subsection></section><section id="H1FCACFA49BA64B4F8D8B06923A4BE004"><enum>403.</enum><header>Increased penalties for failure to file retirement plan returns</header> <subsection id="H26D26682A8E740A584CD8A3D92924C7D"><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="H831EA2632B034E929A9871C2634D4A65"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>$25</quote> and inserting <quote>$250</quote>; and</text> </paragraph><paragraph id="HFBEAA16BE8B64B4D8B86A62F3D8C6953"><enum>(2)</enum><text>by striking <quote>$15,000</quote> and inserting <quote>$150,000</quote>.</text> </paragraph></subsection><subsection id="HC0476D0C95E940429F5377B40A80DCAD"><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="H204E4D3A97DA45FC8A004E5BE01BB363"><enum>(1)</enum><text>by striking <quote>$1</quote> both places it appears in paragraphs (1) and (2) and inserting <quote>$10</quote>;</text> </paragraph><paragraph id="H9A710499B50A44B9845401268CA4C01F"><enum>(2)</enum><text>by striking <quote>$5,000</quote> in paragraph (1) and inserting <quote>$50,000</quote>; and</text> </paragraph><paragraph id="H094DCF226E7542FC8DF867F4F4BD91FB"><enum>(3)</enum><text>by striking <quote>$1,000</quote> in paragraph (2) and inserting <quote>$10,000</quote>.</text> </paragraph></subsection><subsection id="HC29B2C187EB24F9FB94D0D221C8DC4FA"><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="HC370DF0FA8EB415599DD338433B15922"><enum>(1)</enum><text>by striking <quote>$10</quote> and inserting <quote>$100</quote>; and</text> </paragraph><paragraph id="HE8764FBAD55C4DFE8DE1717E5E6E14D3"><enum>(2)</enum><text>by striking <quote>$5,000</quote> and inserting <quote>$50,000</quote>.</text> </paragraph></subsection><subsection id="H38CF49D0E7A042DFA31408FDB94242F0"><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, 2019.</text> </subsection></section><section id="HACF3AF1773F44387A55948125BFC993A"><enum>404.</enum><header>Increase information sharing to administer excise taxes</header> <subsection id="H6428D12B58C14551BD7A1D7D92774B1F"><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="HE6FE2A0706AE496585A2C37A03D27430" style="OLC"> <paragraph id="H10C70D4B760842B293D62505A785FF58"><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="H9248B56349234455B1EA9D6BD96E718D"><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><enum>V</enum><header>Tax Relief For Certain Children</header> <section id="H62B65729E9D14604961F953CC9C44131"><enum>501.</enum><header>Modification of rules relating to the taxation of unearned income of certain children</header> <subsection id="H915DCF4E0FC540CDA009AC745193CD85"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/1">Section 1(j)</external-xref> of the Internal Revenue Code of 1986 is amended by striking paragraph (4).</text> </subsection><subsection id="H9AA6E4B936A84A5EAD6DB146CB3C0797"><enum>(b)</enum><header>Coordination with alternative minimum tax</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/55">Section 55(d)(4)(A)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at the end of clause (i)(II), by striking the period at the end of clause (ii)(III) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block display-inline="no-display-inline" id="H7408E1A457564448A76E08FE409D0F3E" style="OLC"> <clause id="HF4E4D45974634819A47805CA744D2BC2"><enum>(iii)</enum><text display-inline="yes-display-inline">subsection (j) of section 59 shall not apply.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="HA58F3A46F093405A9EF95ED1F00172EB"><enum>(c)</enum><header>Effective date</header> <paragraph id="H3E068819276544A3B8DACD19936B0E22"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this subsection, the amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2018.</text> </paragraph><paragraph id="H823C7A63BE4A4D6E86588102D1DF4DF0"><enum>(2)</enum><header>Coordination with alternative minimum tax</header><text>The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2017.</text> </paragraph><paragraph id="HED9B7198F4304E4695B6E43E3E0B919D"><enum>(3)</enum><header>Elective retroactive application</header><text>In the case of a taxpayer who elects the application of this paragraph (at such time and in such manner as the Secretary of the Treasury (or the Secretary’s designee) may provide), the amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2017.</text> </paragraph></subsection></section>

Passed the House of Representatives May 23, 2019.

Cheryl L. Johnson,Clerk.