1.Short title; table of contents
(a)This Act may be cited as the Savings Recovery Act of 2009
.
(b)The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Increase in exempt amount under social security earnings test
Sec. 101. Increase in monthly exempt amount under the Social Security earnings test for individuals who have not attained retirement age.
Title II—Capital gains and losses
Sec. 201. Exclusion of certain dividends and long-term capital gains of noncorporate taxpayers.
Sec. 202. Increase in limitation on capital losses of noncorporate taxpayers.
Title III—Savings for higher education
Sec. 301. Credit for contributions to 529 plans.
Sec. 302. Investment direction under qualified tuition programs.
Title IV—Retirement plans
Subtitle A—Individual retirement plans and defined contribution plans
Sec. 401. Elimination of marriage penalties in income limitations with respect to individual retirement plan contributions.
Sec. 402. Increase in dollar limitations on contributions to retirement plans.
Sec. 403. Increase in permitted catch-up contributions to retirement plans.
Sec. 404. Extension of waiver of required minimum distribution rules.
Sec. 405. Provisions relating to plan or contract amendments.
Subtitle A—Defined benefit plans
Sec. 411. Expansion of corridor within which single-employer defined benefit plans are allowed to average asset values.
Sec. 412. Extended period for single-employer defined benefit plans to amortize the shortfall amortization base for 2009 and 2010.
<enum>I</enum><header>Increase in exempt amount under social security earnings test</header>
<section display-inline="no-display-inline" id="H416903BF3D614BD19DCA510868C86702" section-type="subsequent-section"><enum>101.</enum><header>Increase in monthly exempt amount under the Social Security earnings test for individuals who have not attained retirement age</header>
<subsection id="H55F8DC52B6924454B8169DDD3B9D29D1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 203(f)(8) of the Social Security Act (42 U.S.C. 403(f)(8)) is amended—</text>
<paragraph id="H435FCCCEFB2F49F6B1EF056684918BAF"><enum>(1)</enum><text>by redesignating subparagraph (E) as subparagraph (F); and</text> </paragraph>
<paragraph id="HF063202C74034B03A6BBBF94FE887C13"><enum>(2)</enum><text>by inserting after subparagraph (D) the following new subparagraph:</text>
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<subparagraph id="H907EB7218D604406B5B26D44431024E0" indent="up1"><enum>(E)</enum><text>Notwithstanding any other provision of this subsection, the exempt amount which is applicable to an individual who has not attained retirement age before the close of the taxable year ending after 2008 and before 2010 shall be, for each month of such taxable year, $2,360.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="H83483673664542ED861F4DE27913F835"><enum>(b)</enum><header>Conforming amendments</header><text>Section 203(f) of such Act is amended—</text>
<paragraph id="H61E6CA94BA4849E5A03F008BAAD17B21"><enum>(1)</enum><text>in paragraph (8)(B)—</text>
<subparagraph id="HED9163E5D79C40698F5A7F9DAFA0ECCB"><enum>(A)</enum><text>by striking <quote>subparagraph (D))</quote> and all that follows through <quote>individuals),</quote> in the matter in clause (ii) preceding subclause (I), and inserting <quote>subparagraph (D)) or the taxable year ending after 2008 and before 2010 (with respect to other individuals),</quote>; and</text> </subparagraph>
<subparagraph display-inline="no-display-inline" id="HBA639D2AE6074B22A9B88512C8453BC1"><enum>(B)</enum><text>by striking <quote>subparagraph (D))</quote> and all that follows through <quote>individuals),</quote> in clause (ii)(II), and inserting <quote>subparagraph (D)) or 2007 (with respect to other individuals),</quote>; and</text> </subparagraph></paragraph>
<paragraph id="HF6BABF3297EB4A13BA4077D05EBA1069"><enum>(2)</enum><text>in paragraph (9), by striking <quote>and (8)(E)</quote> and inserting <quote>(8)(E), and (8)(F)</quote>.</text> </paragraph></subsection>
<subsection id="H4DEB160C449A45238FE6C708922341DF"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply for taxable years ending after 2008 in the case of individuals who have not, with respect to the taxable year involved, attained retirement age (within the meaning of section 203(f)(9) of the Social Security Act) before the close of such taxable year.</text> </subsection></section>
<enum>II</enum><header>Capital gains and losses</header>
<section id="H5D4D3CAE64EE46B79294E46236947056" section-type="subsequent-section"><enum>201.</enum><header>Exclusion of certain dividends and long-term capital gains of noncorporate taxpayers</header>
<subsection id="HB3AA0077CCC846C49D7860C3899BFD01"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139C the following new section:</text>
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<section id="HDBA8A0A352144FB78F461E25F349141D"><enum>139D.</enum><header>Certain dividends and long-term capital gains</header>
<subsection id="HF0698C59D1944450A6C1405D07F14C56"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer other than a corporation, gross income shall not include—</text>
<paragraph id="H81E91FB1F1844E42B6FE752380A9405A"><enum>(1)</enum><text>any qualified dividend income (as defined in section 1(h)(11)(B), determined without regard to clause (ii)(IV) thereof and without regard to section 303 of the Jobs and Growth Tax Relief Reconciliation Act of 2003) received during 2009 or 2010, and</text> </paragraph>
<paragraph id="HA2D0612509FB45D58977DAAA7D98AC76"><enum>(2)</enum><text>any gain from the sale or exchange of qualified property held for more than 1 year if such asset was acquired by purchase (as defined in section 179(d)(2)) during 2009 or 2010.</text> </paragraph></subsection>
<subsection id="HEF9C43F1C0F54176B0D0B2D841CCC524"><enum>(b)</enum><header>Qualified property</header><text>For purposes of this section, the term <quote>qualified property</quote> means—</text>
<paragraph id="H0DFBBE11ADB44EFD94462EDF28AD9F3C"><enum>(1)</enum><text>any security (as defined in section 475(c)(2) determined without regard to the last sentence thereof), and</text> </paragraph>
<paragraph id="H10F568ED35584BDF81919F4E80A644BC"><enum>(2)</enum><text>any nonresidential real property (as defined in section 168(e)(2)(B)).</text> </paragraph></subsection>
<subsection id="H7C88FED5C1904EF6BDD05D22505D82CA"><enum>(c)</enum><header>Special rules</header>
<paragraph id="H533B8E7B6951477198F0F8E37B985D35"><enum>(1)</enum><header>Exception for unrecaptured section 1250 gain</header><text>Subsection (a) shall not apply to any gain which would be treated as ordinary income if section 1250(b)(1) included all depreciation and the applicable percentage under section 1250(a) were 100 percent.</text> </paragraph>
<paragraph id="H29ADFA898CA94AB58CD31C81E4FB4F95"><enum>(2)</enum><header>Treatment of long-term section 1256 gain</header><text>Gain on a section 1256 contract which is treated as long-term capital gain under section 1256 shall be treated for purposes of this section as gain on the sale of qualified property held for more than 1 year.</text> </paragraph>
<paragraph id="HBFF2858DBE04457E9AA6A9AC78C67C25"><enum>(3)</enum><header>Application of certain rules</header><text>Rules similar to the rules of section 1202(k) shall apply for purposes of this section.</text> </paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H267CDDB41A504377AA53ECFB2621E4F7"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H67ACA9596CC847F69288AA975ADCADC9"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1(h)(11)(B)(ii) of such Code is amended by striking <quote>and</quote> at the end of subclause (II), by striking the period at the end of subclause (III) and inserting <quote>, and</quote>, and by adding at the end the following new subclause:</text>
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<subclause id="HAF2D79C66B40411C8487424163A25A9A"><enum>(IV)</enum><text display-inline="yes-display-inline">any dividend excluded from gross income under section 139D.</text> </subclause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HDC3ACF04E51945978487AA9C74DBF16B"><enum>(2)</enum><text>The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139C the following new item:</text>
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<toc container-level="quoted-block-container" idref="H5E1D250CBBAE465B872AA7C1D2EB57CA" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HDBA8A0A352144FB78F461E25F349141D" level="section">Sec. 139D. Certain dividends and long-term capital gains.</toc-entry> </toc> <after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HAA89F27909CE44D2A337E74E1EA4AA55"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years ending after December 31, 2008.</text> </subsection></section>
<section id="H50B9116D169E40568F9183193B2F6928"><enum>202.</enum><header>Increase in limitation on capital losses of noncorporate taxpayers</header>
<subsection id="HA558799459C14BD68940C4349D92337A"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (b) of section 1211 of the Internal Revenue Code of 1986 is amended to read as follows:</text>
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<subsection id="H314E566BB9784757BCB767E9D50D1020"><enum>(b)</enum><header>Other taxpayers</header>
<paragraph id="H42F2D315701C4564A28A4E61B25AC7A3"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of a taxpayer other than a corporation, losses from sales or exchanges of capital assets shall be allowed only to the extent of the gains from such sales or exchanges, plus (if such losses exceed such gains) the lower of—</text>
<subparagraph id="H8ECB7BE8282C4C0DB3B6FE01B9F9910B"><enum>(A)</enum><text>$10,000 (half of such amount in the case of a married individual filing a separate return), or</text> </subparagraph>
<subparagraph id="H4B418C36E4CC4B03B1C4E58063F64239"><enum>(B)</enum><text>the excess of such losses over such gains.</text> </subparagraph></paragraph>
<paragraph id="HB39F0B799D3E47BE93FE2F31C28DFA61"><enum>(2)</enum><header>Inflation adjustment</header><text display-inline="yes-display-inline">In the case of any taxable year beginning in a calendar year after 2009, the $10,000 amount contained in paragraph (1)(A) shall be increased by an amount equal to—</text>
<subparagraph id="H08683AC694524817AC0846AE300C8220"><enum>(A)</enum><text>such dollar amount, multiplied by</text> </subparagraph>
<subparagraph id="HA71A492D34A040C1994E3BFC9F1C8BAA"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2008</quote> for <quote>calendar year 1992</quote> in subparagraph (B) thereof.</text> </subparagraph><continuation-text continuation-text-level="paragraph">Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $250.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HB0167C46A86E46F6991428BAF87B4619"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2008.</text> </subsection></section>
<enum>III</enum><header>Savings for higher education</header>
<section display-inline="no-display-inline" id="H54B29410DB5C4B0D801E1826158942B3" section-type="subsequent-section"><enum>301.</enum><header>Credit for contributions to 529 plans</header>
<subsection id="H3393EC3E8137426FB27F4DF71A3883F5"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subsection (d) of section 25B of the Internal Revenue Code of 1986 (relating to elective deferrals and IRA contributions by certain individuals) is amended by redesignating paragraph (2) as paragraph (3) and by inserting after paragraph (1) the following new paragraph:</text>
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<paragraph id="H13FA478FED5741058AAACCEAFBE51248"><enum>(2)</enum><header>Contributions to qualified tuition programs</header>
<subparagraph id="HF72EA848D6F447CBAE450234CFCF8B71"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified savings contribution</term> includes the amount of any purchase or contribution described in paragraph (1)(A) of section 529(b) to a qualified tuition program (as defined in such section) if—</text>
<clause id="H301738A8402E43FCA7810FE2DF8B3A62"><enum>(i)</enum><text>the taxpayer has the power to authorize distributions and otherwise administer the account, and</text> </clause>
<clause id="H55038A58474F4047A463F903A0286BC9"><enum>(ii)</enum><text>the designated beneficiary of such purchase or contribution is the taxpayer, the taxpayer’s spouse, or an individual with respect to whom the taxpayer is allowed a deduction under section 151.</text> </clause></subparagraph>
<subparagraph id="H16BE6AD97005468C8BCA81ED857BE564"><enum>(B)</enum><header>Limitation based on compensation</header><text>The amount treated as a qualified savings contribution by reason of subparagraph (A) for any taxable year shall not exceed the sum of—</text>
<clause id="HB8DE470CDC224F5F92161872A67A5863"><enum>(i)</enum><text>the compensation (as defined in section 219(f)(1)) includible in the taxpayer’s gross income for the taxable year, and</text> </clause>
<clause id="HE53E5C237E3E48BB8B301D1F0C05412D"><enum>(ii)</enum><text>the amount excluded from the taxpayer’s gross income under section 112 (relating to combat pay) for such year.</text> </clause></subparagraph>
<subparagraph id="HBFD552B7CD3C4F858CAD7B4BB9DEF3EA"><enum>(C)</enum><header>Determination of adjusted gross income</header><text display-inline="yes-display-inline">Solely for purposes of determining the applicable percentage under subsection (b) which applies with respect to the amount treated as a qualified savings contribution by reason of subparagraph (A), adjusted gross income (determined without regard to this subparagraph) shall be increased by the excess (if any) of—</text>
<clause id="HF8D4FC61C0AD42B4A4E6C85019D847DF"><enum>(i)</enum><text>the social security benefits received during the taxable year (within the meaning of section 86), over</text> </clause>
<clause id="H2A38DB8DA4414AF8B780EF290C5CA70B"><enum>(ii)</enum><text>the amount included in gross income for such year under section 86.</text> </clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HF04DC8B76B9E4A18B71A1CA533FD28FA"><enum>(b)</enum><header>Conforming amendments</header>
<paragraph id="H4CFF38879A484408B5DDC70B2627FE5C"><enum>(1)</enum><text display-inline="yes-display-inline">Section 25B of such Code is amended by striking <quote>qualified retirement savings</quote> each place it appears in the text and inserting <quote>qualified savings</quote>.</text> </paragraph>
<paragraph id="H3BFAAFF01753454A914AFF4005F5310A"><enum>(2)</enum><text>The subsection heading for section 25B(d) of such Code is amended by striking <quote><header-in-text level="subsection" style="OLC">retirement</header-in-text></quote>.</text> </paragraph>
<paragraph id="HAC80D230DFFF47DD82A2AE7D54C09031"><enum>(3)</enum><text>Subparagraph (A) of section 25B(d)(3) of such Code, as redesignated by subsection (a), is amended—</text>
<subparagraph id="HB2105CDFCE684327A57EEBC4DAB8DD8F"><enum>(A)</enum><text>by striking <quote>paragraph (1)</quote> the first place it appears and inserting <quote>paragraph (1) or (2)</quote>, and</text> </subparagraph>
<subparagraph id="HA86AA8DD61DF4EF1AA037D9FAE1382A8"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>paragraph (1)</quote> the second place it appears and inserting <quote>paragraph (1), or (2), as the case may be,</quote>.</text> </subparagraph></paragraph>
<paragraph id="H87095F3968D54EAC8CAF90085809C1C0"><enum>(4)</enum><text>The heading for section 25B of such Code is amended by striking <quote><header-in-text level="section" style="OLC">and IRA contributions</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">, IRA contributions, and qualified tuition program contributions</header-in-text></quote>.</text> </paragraph>
<paragraph id="HAECF987024514029A5A0B4109012A778"><enum>(5)</enum><text>The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by striking the item relating to section 25B and inserting the following new item:</text>
<toc regeneration="no-regeneration">
<toc-entry level="section"><quote>Sec. 25B. Elective deferrals, IRA contributions, and qualified tuition program contributions by certain individuals.</quote>.</toc-entry> </toc> </paragraph></subsection>
<subsection id="H11361C0204F749AEA1B9D168BF2786CE"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to contributions made after December 31, 2008.</text> </subsection></section>
<section display-inline="no-display-inline" id="H0D211A8C80884EE8A305A0984D8761DB" section-type="subsequent-section"><enum>302.</enum><header>Investment direction under qualified tuition programs</header>
<subsection id="H660EB61EA7894668B0102E32ADD423FC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (4) of section 529(b) of the Internal Revenue Code of 1986 (relating to investment direction) is amended by striking the period at the end and inserting <quote>more frequently than 2 times per calendar year.</quote>.</text> </subsection>
<subsection id="H682E3C517C674095A8AE4D35EEA7BF4D"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to years beginning after December 31, 2008.</text> </subsection></section>
<enum>IV</enum><header>Retirement plans</header>
<subtitle id="H8A0F59E39FC141189583531DB18C6F1D"><enum>A</enum><header>Individual retirement plans and defined contribution plans</header>
<section id="H2E8CA1A926D146FB966E848F9AF145B2"><enum>401.</enum><header>Elimination of marriage penalties in income limitations with respect to individual retirement plan contributions</header>
<subsection id="H426CCD66D99148458D83A420B128EDC9"><enum>(a)</enum><header>Elimination of marriage penalty in limitation on deduction for IRA contributions</header>
<paragraph id="HEC72D38CB9B74007B5D6AC65923A7918"><enum>(1)</enum><header>In general</header><text>Subparagraph (B) of section 219(g)(3) of the Internal Revenue Code of 1986 is amended to read as follows:</text>
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<subparagraph id="H569D863A84904815ACA7199B0271238C"><enum>(B)</enum><header>Applicable dollar amount</header>
<clause id="HC3D3B1E3D9DE41EFBE54857CA46E10C6"><enum>(i)</enum><header>In general</header><text>The term <quote>applicable dollar amount</quote> means $50,000 (twice such amount in the case of a joint return).</text> </clause>
<clause id="H1E116DF9C11C493B96CE9A41B2EFE80D"><enum>(ii)</enum><header>Married individuals filing a separate return</header><text display-inline="yes-display-inline">In the case of a married individual filing a separate return, the applicable dollar amount is zero.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HFE957DCD5B404E81B0D9AB6C214B08A7"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (8) of section 219(g) of such Code is amended by striking <quote>the dollar amount in the last row of the table contained in paragraph (3)(B)(i), the dollar amount in the last row of the table contained in paragraph (3)(B)(ii), and the dollar amount contained in paragraph (7)(A)</quote> and inserting <quote>the dollar amounts contained in paragraphs (3)(B)(i) and (7)(A)</quote>.</text> </paragraph></subsection>
<subsection id="HAFBEF42908C94B99992AE5A8BF3E76F8"><enum>(b)</enum><header>Elimination of marriage penalty in limitation on Roth IRA contributions</header>
<paragraph id="H6F86FEF591B2414FB8F42C4BC224F193"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subclause (I) of section 408A(c)(3)(C)(ii) of such Code is amended by striking <quote>$150,000</quote> and inserting <quote>twice the amount in effect under subclause (II)</quote>.</text> </paragraph>
<paragraph id="HED7057B081704EE4970FD9C15F79D661"><enum>(2)</enum><header>Conforming amendment</header><text>Subparagraph (E) of section 408A(c)(3) of such Code is amended by striking <quote>the dollar amounts in subclauses (I) and (II) of subparagraph (C)(ii) shall each</quote> and inserting <quote>the dollar amount in subparagraph (C)(ii)(II) shall</quote>.</text> </paragraph></subsection>
<subsection id="H4ED81EB5A70E48B48DF1F77782479BC1"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2008.</text> </subsection></section>
<section id="H334E84104D554D9EA0D00D4E25EDD426"><enum>402.</enum><header>Increase in dollar limitations on contributions to retirement plans</header>
<subsection id="H8D9E3AE4F3934CCE954679D883E86DD3"><enum>(a)</enum><header> Permanent increase in dollar limitation on deduction for contributions to individual retirement plans</header>
<paragraph id="H568BCEB07A9F4553A26FC367B6061A7C"><enum>(1)</enum><header>In general</header><text>Paragraph (5) of section 219(b) of the Internal Revenue Code of 1986 is amended—</text>
<subparagraph id="H7A7E6FBE94A540C8AA11F0947E82CFE3"><enum>(A)</enum><text>by amending subparagraph (A) to read as follows:</text>
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<subparagraph id="H0C66041CAFE94CBFAA9F8B5E1AFEC5B6"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The deductible amount for any taxable year is the applicable dollar amount in effect under section 402(g)(1) for such taxable year.</text> </subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H06917D6D14854FFEAD3E12FCE335548A"><enum>(B)</enum><text>by striking subparagraph (D).</text> </subparagraph></paragraph>
<paragraph id="HD183A5D01E3948E1A09C7C0BB2CDF6F7"><enum>(2)</enum><header>Simple retirement accounts</header><text>Subparagraph (E) of section 408(p)(2) of such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HE42CA62663B448B282A9B76AE754927A" style="OLC">
<subparagraph id="HA3EF81AB3B6F458EA4293E0D0D6A494B"><enum>(E)</enum><header>Applicable dollar amount</header><text display-inline="yes-display-inline">For purposes of subparagraph (A)(ii), the applicable dollar amount for any taxable year is the applicable dollar amount in effect under section 402(g)(1) for such taxable year.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HDD8D5947B50B4F21ADF127FE0AA3C0EA"><enum>(b)</enum><header>Temporary increase in contributions to defined contribution plans</header>
<paragraph id="HD0E216E250AB4EF5848A5416FFDC99C9"><enum>(1)</enum><header>Increase in limitation on elective deferrals</header><text>Paragraph (1) of section 402(g) of such Code is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H601C502B2E2C461588BCD01D060A8AF4" style="OLC">
<subparagraph id="HE5AE7AD95AEC4894B41086ADFCA7E58D"><enum>(D)</enum><header>Temporary increase in applicable dollar amount</header><text display-inline="yes-display-inline">In the case of taxable years beginning in calendar year 2009, 2010, or 2011, the applicable dollar amount determined under subparagraph (B) shall not be less than $33,000.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HCDFEA99969814DD1A6ADA65B75918904"><enum>(2)</enum><header>Increase in combined employee and employer limitation on contributions to defined contribution plans</header><text>Paragraph (1) of section 415(c) of such Code is amended by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H5ED519D3547647E6954349262DB4D937" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">In the case of years beginning in calendar year 2009, 2010, or 2011, the dollar amount in effect under subparagraph (A) shall not be less than $65,500.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph></subsection>
<subsection id="HB517249A1D214A58902994BE5E332DCE"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to years beginning after December 31, 2008.</text> </subsection></section>
<section id="HA077CEF477BA47418E9D54704D9A9587"><enum>403.</enum><header>Increase in permitted catch-up contributions to retirement plans</header>
<subsection id="H52967BF5A34A4124AF6EE63C5C1AA41F"><enum>(a)</enum><header>Permanent increase in annual catch-Up contribution limitation for individual retirement plans</header>
<paragraph display-inline="no-display-inline" id="HFEDF78294030424EAD915F359ABD2218"><enum>(1)</enum><header>In general</header><text>Clause (ii) of section 219(b)(5)(B) of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFD1175E35DF943B5972E4BA3DF9A2ECD" style="OLC">
<clause id="HAA4FA29369584A408405046B4A87CAB4"><enum>(ii)</enum><header>Applicable amount</header><text display-inline="yes-display-inline">For purposes of clause (i), the applicable amount for any taxable year is the applicable dollar amount in effect under section 414(v)(2)(B) for such taxable year.</text> </clause><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HC417F940CD074051B510CCE3BD31F29A"><enum>(2)</enum><header>Simple retirement accounts</header>
<subparagraph id="H0AACA07BA1AC42ABAD445464157D3969"><enum>(A)</enum><header>In general</header><text>Subparagraph (B) of section 414(v)(2) of such Code is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H8A5E8528F9664938B74763060C190763" style="OLC">
<subparagraph id="HACBFFC92BD324135BDBF409D595F4F7F"><enum>(B)</enum><header>Applicable dollar amount</header><text display-inline="yes-display-inline">For purposes of this paragraph, the applicable dollar amount is $5,000.</text> </subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subparagraph>
<subparagraph id="H9B129CB7C0004F97AADEC6785865E297"><enum>(B)</enum><header>Conforming amendments</header>
<clause id="HEFF959238FD84002B07324EFA89BC150"><enum>(i)</enum><text>Subparagraph (C) of section 402(g)(1) of such Code is amended by striking <quote>section 414(v)(2)(B)(i)</quote> and inserting <quote>section 414(v)(2)(B)</quote>.</text> </clause>
<clause id="HBDC49063A9354AD69B6917890DFC41B6"><enum>(ii)</enum><text>Subparagraph (C) of section 414(v)(2) of such Code is amended by striking <quote>subparagraph (B)(i) and the $2,500 amount in subparagraph (B)(ii)</quote> and inserting <quote>subparagraph (B)</quote>.</text> </clause>
<clause id="H5ABCBBB06C5C49628968932DDBF469B2"><enum>(iii)</enum><text display-inline="yes-display-inline">Clause (ii) of section 457(e)(18)(A) of such Code is amended by striking <quote>section 414(v)(2)(B)(i)</quote> and inserting <quote>section 414(v)(2)(B)</quote>.</text> </clause></subparagraph></paragraph></subsection>
<subsection id="HB49AC0EA8DE8438DA7735A21AD3932DE"><enum>(b)</enum><header>Temporary increase in permitted catch-Up contributions</header><text display-inline="yes-display-inline">Subparagraph (B) of section 414(v)(2) of such Code, as amended by subsection (a), is amended by adding at the end the following: <quote>In the case of taxable years beginning in 2009, 2010, or 2011, the applicable dollar amount in effect under the preceding sentence shall not be less than $10,000.</quote>.</text> </subsection>
<subsection id="H373147E1996E42B18A76EEB8EAF94F36"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to years beginning after December 31, 2008.</text> </subsection></section>
<section id="H54BF074B992D4CA1B153E3103D26ADD8"><enum>404.</enum><header>Extension of waiver of required minimum distribution rules</header>
<subsection id="HCD9F7CED2719449EB919F11D58C383F6"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (H) of section 401(a)(9) of the Internal Revenue Code of 1986 is amended—</text>
<paragraph id="HE696A718966B445AA408F3C58E53F6DF"><enum>(1)</enum><text>by striking <quote>calendar year 2009</quote> in clause (i) and inserting <quote>calendar years 2009, 2010, 2011, and 2012</quote>,</text> </paragraph>
<paragraph id="H2E8D7F651D274ACA91C4704E4B20D323"><enum>(2)</enum><text>by striking <quote>2009</quote> in clause (ii)(I) and inserting <quote>2012</quote>, and</text> </paragraph>
<paragraph id="HD975B695469D4388A61F10277E4BD9C2"><enum>(3)</enum><text>by striking <quote>calendar year 2009</quote> in clause (ii)(II) and inserting <quote>calendar years 2009, 2010, 2011, and 2012</quote>.</text> </paragraph></subsection>
<subsection id="H7B1EEB90FF30496EA7D71DE56B80E65D"><enum>(b)</enum><header>Eligible rollover distributions</header><text>The last sentence of section 402(c)(4) of such Code is amended—</text>
<paragraph id="H908E0589B7E041D6BC314E576E111B3D"><enum>(1)</enum><text>by striking <quote>2009</quote> the first place it appears and inserting <quote>calendar year 2009, 2010, 2011, or 2012</quote>, and</text> </paragraph>
<paragraph id="H58F0CC87E3A14D8E946411E4460EA13C"><enum>(2)</enum><text>by striking <quote>2009</quote> the second place it appears and inserting <quote>such calendar years</quote>.</text> </paragraph></subsection>
<subsection id="H0E7C91E97CA248EBA7E6ABC6891D9C64"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply for calendar years beginning after December 31, 2009.</text> </subsection></section>
<section id="HE749F5CE93D0403385444A2F50DE44E5"><enum>405.</enum><header>Provisions relating to plan or contract amendments</header>
<subsection id="HE50B1E17C02A4ADC897B904D230724A7"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">If this section applies to any pension plan or contract amendment, such pension plan or contract shall not fail to be treated as being operated in accordance with the terms of the plan solely because the plan operates in accordance with the amendments made by sections 402, 403, and 404.</text> </subsection>
<subsection id="HFE1BC7EC30A2454C8DD16D3B087E1D59"><enum>(b)</enum><header>Amendments to which section applies</header><text display-inline="yes-display-inline">This section shall apply to any amendment to any pension plan or annuity contract which—</text>
<paragraph id="H754AFDCAFF93430ABC26BEA5A586064B"><enum>(1)</enum><text>is made pursuant to the amendments made by section 402, 403, or 404, and</text> </paragraph>
<paragraph id="H0603AF834A574062BDA827043CC58E68"><enum>(2)</enum><text>is made on or before the last day of the first plan year beginning on or after January 1, 2012 (January 1, 2013, in the case of a governmental plan).</text> </paragraph></subsection></section></subtitle>
<subtitle id="H23EB986518C84158BDEC22F79EEDCC26"><enum>A</enum><header>Defined benefit plans</header>
<section id="HA1CC7CF2E2584AE8AA9CB5BB1502DFAF"><enum>411.</enum><header>Expansion of corridor within which single-employer defined benefit plans are allowed to average asset values</header>
<subsection id="HF4C844E13F284F16ABA4CCFB79F20E88"><enum>(a)</enum><header>Amendment to ERISA</header><text display-inline="yes-display-inline">Paragraph (3) of section 303(g) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H4FA32B0A3ED84FB7A38EADDDD70FFA93" style="OLC">
<subparagraph id="H99E606B26A5A4CDE861A794C05820044"><enum>(C)</enum><header>Special rule for 2009 and 2010</header><text display-inline="yes-display-inline">In the case of plan years beginning in 2009 or 2010, subparagraph (B)(iii) shall be applied—</text>
<clause id="HBC1E1C9B3E5C4173B823B4C68064A82E"><enum>(i)</enum><text>by substituting <quote>80 percent</quote> for <quote>90 percent</quote>, and</text> </clause>
<clause id="H119D053A759A48F687ED0F30C2AAF565"><enum>(ii)</enum><text>by substituting <quote>120 percent</quote> for <quote>110 percent</quote>.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="HB9CEE10DC2C4414F85CD3958E84C5B2F"><enum>(b)</enum><header>Amendment to IRC</header><text display-inline="yes-display-inline">Paragraph (3) of section 430(g) 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="HA6BC663A26A845A69CE39DB7E72C7229" style="OLC">
<subparagraph id="H768947167C914CEABB9C3052BFD116DD"><enum>(C)</enum><header>Special rule for 2009 and 2010</header><text display-inline="yes-display-inline">In the case of plan years beginning in 2009 or 2010, subparagraph (B)(iii) shall be applied—</text>
<clause id="HDFA9D81C2C644CE983812F8E3098786B"><enum>(i)</enum><text>by substituting <quote>80 percent</quote> for <quote>90 percent</quote>, and</text> </clause>
<clause id="HBA9A2724FD0542D9815D799CEC280C07"><enum>(ii)</enum><text>by substituting <quote>120 percent</quote> for <quote>110 percent</quote>.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection>
<subsection id="H59F65F94A0064FFEAE6C265BADA31BA2"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2008.</text> </subsection></section>
<section id="HACA0DE6BB0224CC4B05569EC970A340F"><enum>412.</enum><header>Extended period for single-employer defined benefit plans to amortize the shortfall amortization base for 2009 and 2010</header>
<subsection id="HE68D8586E6F44B20AEBEB992B1EA7A2F"><enum>(a)</enum><header>Amendments to ERISA</header>
<paragraph id="H0E0E53A66E214165931F58444932D9F7"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of section 303(c) of the Employee Retirement Income Security Act of 1974 is amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H95125F22689C4496AE052E750604C69A" style="OLC">
<subparagraph id="H56DC44911F4A48EB9BA26B3B8A2D8B67"><enum>(D)</enum><header>Special rule for 2009 and 2010</header><text display-inline="yes-display-inline">In the case of the shortfall amortization base of the plan for any plan year beginning in 2009 or 2010 (hereafter in this subparagraph referred to as the <quote>base year</quote>)—</text>
<clause id="H87CB2313458A451EABA65F7134379690"><enum>(i)</enum><header>Determination of installments</header><text display-inline="yes-display-inline">The shortfall amortization installments are—</text>
<subclause id="HC67BE17221FF458685BF9FCE196AAB0E"><enum>(I)</enum><text>in the case of the last 7 plan years in the 9-plan-year period beginning with the base year, the amounts necessary to amortize the shortfall amortization base of the plan for the base year in level annual installments over such last 7 plan years, and</text> </subclause>
<subclause id="HBAFFA91378994F539A6339FDBEC53EFC"><enum>(II)</enum><text>in the case of the first 2 plan years in such 9-plan-year period, interest on such shortfall amortization base (determined as provided in subparagraph (C)).</text> </subclause></clause>
<clause id="H93A66D3D8CA546339FE56A02BE6C31C1"><enum>(ii)</enum><header>Shortfall installment</header><text>The shortfall amortization installment for any plan year in the 9-plan-year period under clause (i) with respect to such shortfall amortization base is the annual installment determined under clause (i) for that year for that base.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HC1C9C3F4DEA445F389DB4803B1E34351"><enum>(2)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline">Paragraph (1) of section 303(c) of such Act is amended by striking <quote>the shortfall amortization bases for such plan year and each of the 6 preceding plan years</quote> and inserting <quote>any shortfall amortization base which has not been fully amortized under this subsection</quote>.</text> </paragraph></subsection>
<subsection id="H50971313EF6743ACBBB61EF1A1FF77B7"><enum>(b)</enum><header>Amendments to IRC</header>
<paragraph id="HC3E96FEE81FC44F5AAF1C40ADDEE5DC5"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of section 430(c) 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="H83FA0686C3324E33B710CBA831F6A85E" style="OLC">
<subparagraph id="HE8651212E0934498BE4D8ABBCA964123"><enum>(D)</enum><header>Special rule for 2009 and 2010</header><text display-inline="yes-display-inline">In the case of the shortfall amortization base of the plan for any plan year beginning in 2009 or 2010 (hereafter in this subparagraph referred to as the <quote>base year</quote>)—</text>
<clause id="H9B994097C7324B49813F44123CC7C061"><enum>(i)</enum><header>Determination of installments</header><text display-inline="yes-display-inline">The shortfall amortization installments are—</text>
<subclause id="HF3A4807C01D642C18F542D49B93B825A"><enum>(I)</enum><text>in the case of the last 7 plan years in the 9-plan-year period beginning with the base year, the amounts necessary to amortize the shortfall amortization base of the plan for the base year in level annual installments over such last 7 plan years, and</text> </subclause>
<subclause id="H7CD6565B91A54FAFAB14FCC326E41E2E"><enum>(II)</enum><text>in the case of the first 2 plan years in such 9-plan-year period, interest on such shortfall amortization base (determined as provided in subparagraph (C)).</text> </subclause></clause>
<clause id="HCA0A71608CFD43F88FC82C03BFE08C95"><enum>(ii)</enum><header>Shortfall installment</header><text>The shortfall amortization installment for any plan year in the 9-plan-year period under clause (i) with respect to such shortfall amortization base is the annual installment determined under clause (i) for that year for that base.</text> </clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph>
<paragraph id="HC080B26448BD471F83216FC88037BF49"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (1) of section 430(c) of such Code is amended by striking <quote>the shortfall amortization bases for such plan year and each of the 6 preceding plan years</quote> and inserting <quote>any shortfall amortization base which has not been fully amortized under this subsection</quote>.</text> </paragraph></subsection>
<subsection id="HAF0789C401824AA1AD19F9D93DDC062E"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2008.</text> </subsection></section></subtitle>