[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3781 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3781

    To amend the Internal Revenue Code of 1986 to reform retirement 
                  provisions, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 19, 2018

Mr. Portman (for himself and Mr. Cardin) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
    To amend the Internal Revenue Code of 1986 to reform retirement 
                  provisions, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE, ETC.

    (a) Short Title.--This Act may be cited as the ``Retirement 
Security and Savings Act of 2018''.
    (b) Amendment of 1986 Code.--Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to a section or other 
provision of the Internal Revenue Code of 1986.
    (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title, etc.
     TITLE I--EXPANDING COVERAGE AND INCREASING RETIREMENT SAVINGS

Sec. 101. Secure deferral arrangements.
Sec. 102. Facilitating automatic enrollment.
Sec. 103. Credit for employers with respect to modified safe harbor 
                            requirements.
Sec. 104. Expansion of saver's credit.
Sec. 105. 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. 106. Separate application of top heavy rules to defined 
                            contribution plans covering part-time 
                            employees.
Sec. 107. Opportunity to claim the saver's credit on form 1040EZ.
Sec. 108. 60-day rollover to inherited individual retirement plan of 
                            nonspouse beneficiary.
Sec. 109. Increase in age for required beginning date for mandatory 
                            distributions.
Sec. 110. Updating of mortality tables for minimum required 
                            distributions.
Sec. 111. Increase in credit limitation for small employer pension plan 
                            startup costs of certain employers.
Sec. 112. Credit for re-enrollment.
Sec. 113. Treatment of student loan payments as elective deferrals for 
                            purposes of matching contributions.
Sec. 114. Treatment of qualified retirement planning services.
Sec. 115. Allow additional nonelective contributions to simple plans.
Sec. 116. Reform of the minimum participation rule.
Sec. 117. Expansion of Employee Plans Compliance Resolution System.
Sec. 118. Enhancement of 403(b) plans.
Sec. 119. Eligibility for participation in retirement plans.
Sec. 120. Small immediate financial incentives for contributing to a 
                            plan.
Sec. 121. Indexing IRA catch-up limit.
Sec. 122. Higher catch-up limit to apply at age 60.
                    TITLE II--PRESERVATION OF INCOME

Sec. 201. Qualifying longevity annuity contracts.
Sec. 202. Remove required minimum distribution barriers for life 
                            annuities.
Sec. 203. Eliminating a penalty on partial annuitization.
Sec. 204. Insurance-dedicated exchange-traded funds.
  TITLE III--SIMPLIFICATION AND CLARIFICATION OF RETIREMENT PLAN RULES

Sec. 301. Review and report to the Congress relating to reporting and 
                            disclosure requirements.
Sec. 302. Consolidation of defined contribution plan notices.
Sec. 303. Performance benchmarks for asset allocation funds.
Sec. 304. Permit nonspousal beneficiaries to roll assets to plans.
Sec. 305. Deferral agreements.
Sec. 306. Simplifying 402(f) notices.
Sec. 307. Guidance related to certain overpayment recoupment practices.
Sec. 308. Treatment of custodial accounts on termination of section 
                            403(b) plans.
Sec. 309. Permit plans to use base pay or rate of pay calculation.
Sec. 310. Roth SIMPLE IRAs.
Sec. 311. Reduction in excise tax on certain accumulations in qualified 
                            retirement plans.
Sec. 312. Clarification of catch-up contributions with respect to 
                            separate lines of business.
Sec. 313. Clarification of substantially equal periodic payment rule.
Sec. 314. Clarification of treatment of distributions of annuity 
                            contracts.
Sec. 315. Clarification regarding elective deferrals.
Sec. 316. Tax treatment of certain nontrade or business SEP 
                            contributions.
Sec. 317. Allow certain plan transfers and mergers.
Sec. 318. Exception from required distributions where aggregate 
                            retirement savings do not exceed $100,000.
Sec. 319. Hardship rules for 403(b) plans.
Sec. 320. IRA preservation.
Sec. 321. Elimination of additional tax on certain distributions.
                 TITLE IV--DEFINED BENEFIT PLAN REFORMS

Sec. 401. Cash balance.
Sec. 402. Aligning use of lookback months to determine interest rates.
Sec. 403. Corrections of mortality tables.
Sec. 404. Cease double-indexing the variable rate premium.
       TITLE V--REFORMING PLAN RULES TO HARMONIZE WITH IRA RULES

Sec. 501. Roth plan distribution rules.
Sec. 502. Distributions for charitable purposes.
Sec. 503. Surviving spouse election to be treated as employee.
Sec. 504. Rollovers from Roth IRAs to plans.
                  TITLE VI--ADMINISTRATIVE PROVISIONS

Sec. 601. Provisions relating to plan amendments.

     TITLE I--EXPANDING COVERAGE AND INCREASING RETIREMENT SAVINGS

SEC. 101. SECURE DEFERRAL ARRANGEMENTS.

    (a) In General.--Subsection (k) of section 401, as amended by 
Public Law 115-123, is further amended by adding at the end the 
following new paragraph:
            ``(15) Alternative method for secure deferral arrangements 
        to meet nondiscrimination requirements.--
                    ``(A) In general.--A secure deferral arrangement 
                shall be treated as meeting the requirements of 
                paragraph (3)(A)(ii).
                    ``(B) Secure deferral arrangement.--For purposes of 
                this paragraph, the term `secure deferral arrangement' 
                means any cash or deferred arrangement which meets the 
                requirements of subparagraphs (C), (D), and (E) of 
                paragraph (13), except as modified by this paragraph.
                    ``(C) Qualified percentage.--For purposes of this 
                paragraph, with respect to any employee, the term 
                `qualified percentage' means, in lieu of the meaning 
                given such term in paragraph (13)(C)(iii), any 
                percentage determined under the arrangement if such 
                percentage is applied uniformly and is--
                            ``(i) at least 6 percent, but not greater 
                        than 10 percent, during the period ending on 
                        the last day of the first plan year which 
                        begins after the date on which the first 
                        elective contribution described in paragraph 
                        (13)(C)(i) is made with respect to such 
                        employee,
                            ``(ii) at least 7 percent during the first 
                        plan year following the plan year described in 
                        clause (i),
                            ``(iii) at least 8 percent during the 
                        second plan year following the plan year 
                        described in clause (i),
                            ``(iv) at least 9 percent during the third 
                        plan year following the plan year described in 
                        clause (i), and
                            ``(v) at least 10 percent during any 
                        subsequent plan year.
                    ``(D) Matching contributions.--
                            ``(i) In general.--For purposes of this 
                        paragraph, an arrangement shall be treated as 
                        having met the requirements of paragraph 
                        (13)(D)(i) if and only if the employer makes 
                        matching contributions on behalf of each 
                        employee who is not a highly compensated 
                        employee in an amount equal to the sum of--
                                    ``(I) 100 percent of the elective 
                                contributions of the employee to the 
                                extent such contributions do not exceed 
                                2 percent of compensation,
                                    ``(II) 50 percent of so much of 
                                such contributions as exceed 2 percent 
                                but do not exceed 6 percent of 
                                compensation, plus
                                    ``(III) 20 percent of so much of 
                                such contributions as exceed 6 percent 
                                but do not exceed 10 percent of 
                                compensation.
                            ``(ii) Application of rules for matching 
                        contributions.--The rules of clause (ii) of 
                        paragraph (12)(B) and clauses (iii) and (iv) of 
                        paragraph (13)(D) shall apply for purposes of 
                        clause (i), but the rule of clause (iii) of 
                        paragraph (12)(B) shall not apply for such 
                        purposes. The rate of matching contribution for 
                        each incremental deferral must be at least as 
                        high as the rate specified in clause (i), and 
                        may be higher, so long as such rate does not 
                        increase as an employee's rate of elective 
                        contributions increases.''.
    (b) Matching Contributions and Employee Contributions.--Subsection 
(m) of section 401 is amended by redesignating paragraph (13) as 
paragraph (14) and by inserting after paragraph (12) the following new 
paragraph:
            ``(13) Alternative method for secure deferral 
        arrangements.--A defined contribution plan shall be treated as 
        meeting the requirements of paragraph (2) with respect to 
        matching contributions and employee contributions if the plan--
                    ``(A) is a secure deferral arrangement (as defined 
                in subsection (k)(15)),
                    ``(B) meets the requirements of clauses (ii) and 
                (iii) of paragraph (11)(B), and
                    ``(C) provides that matching contributions on 
                behalf of any employee may not be made with respect to 
                an employee's contributions or elective deferrals in 
                excess of 10 percent of the employee's compensation.''.
    (c) Conforming Amendments.--Subparagraph (H) of section 416(g)(4) 
is amended--
            (1) in clause (i), by striking ``section 401(k)(12) or 
        401(k)(13)'' and inserting ``paragraph (12), (13), or (15) of 
        section 401(k)'', and
            (2) in clause (ii), by striking ``section 401(m)(11) or 
        401(m)(12)'' and inserting ``paragraph (11), (12), or (13) of 
        section 401(m)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

SEC. 102. FACILITATING AUTOMATIC ENROLLMENT.

    The Secretary of the Treasury shall promulgate regulations or other 
guidance which--
            (1) simplifies and clarifies the rules regarding the timing 
        of participant notices required under the Internal Revenue Code 
        of 1986 with respect to an eligible automatic enrollment 
        contribution arrangement (within the meaning of section 
        414(w)(3) of the Internal Revenue Code of 1986) or required 
        under section 336(c)(3) of the Consolidated Appropriations Act, 
        2016 with respect to an automatic contribution arrangement 
        (within the meaning of section 336(c)(2) of such Act), with 
        specific application to--
                    (A) plans which allow employees to be eligible for 
                participation immediately upon beginning employment; 
                and
                    (B) employers with multiple payroll and 
                administrative systems; and
            (2) simplifies and clarifies the application of automatic 
        escalation features under arrangements described in paragraph 
        (1) in the context of employers with multiple payroll and 
        administrative systems.
Such regulations or guidance shall address the particular case of 
employees within the same plan who are subject to different notice 
timing and different percentage requirements, and provide assistance 
for plan sponsors in managing such cases.

SEC. 103. CREDIT FOR EMPLOYERS WITH RESPECT TO MODIFIED SAFE HARBOR 
              REQUIREMENTS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
is amended by adding at the end the following new section:

``SEC. 45T. CREDIT FOR SMALL EMPLOYERS WITH RESPECT TO MODIFIED SAFE 
              HARBOR REQUIREMENTS FOR AUTOMATIC CONTRIBUTION 
              ARRANGEMENTS.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
small employer, the safe harbor adoption credit determined under this 
section for any taxable year is the amount equal to the total of the 
employer's matching contributions under section 401(k)(15)(D) during 
the taxable year on behalf of employees who are not highly compensated 
employees.
    ``(b) Limitations.--
            ``(1) Limitation with respect to compensation.--The credit 
        determined under subsection (a) with respect to contributions 
        made on behalf of any employee shall not exceed 2 percent of 
        the compensation of such employee for the taxable year.
            ``(2) Limitation with respect to years of participation.--
        Credit shall be determined under subsection (a) with respect to 
        contributions made on behalf of any employee only during the 
        first 5 years such employee participates in the qualified 
        automatic contribution arrangement.
    ``(c) Definitions.--
            ``(1) In general.--Any term used in this section which is 
        also used in section 401(k)(15) shall have the same meaning as 
        when used in such section.
            ``(2) Small employer.--The term `small employer' means an 
        eligible employer (as defined in section 408(p)(2)(C)(i)).
    ``(d) Denial of Double Benefit.--No deduction shall be allowable 
under this title for any contribution with respect to which a credit is 
allowed under this section.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 is amended by striking ``plus'' at the end of paragraph 
(31), by striking the period at the end of paragraph (32) and inserting 
``, plus'', and by adding at the end the following new paragraph:
            ``(33) the safe harbor adoption credit determined under 
        section 45T.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by adding after the 
item relating to section 45S the following new item:

``Sec. 45T. Credit for small employers with respect to modified safe 
                            harbor requirements for automatic 
                            contribution arrangements.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years which include any portion of a plan year 
beginning after December 31, 2018.

SEC. 104. EXPANSION OF SAVER'S CREDIT.

    (a) Expansion.--Paragraph (1) of section 25B(b) is amended by 
striking ``$32,500'' both places it appears in subparagraphs (B) and 
(C) of paragraph (1) and inserting ``$40,000''.
    (b) Testing Period.--Subparagraph (B) of section 25B(d)(2) is 
amended to read as follows:
                    ``(B) Testing period.--For purposes of subparagraph 
                (A), the testing period, with respect to a taxable 
                year, is the period which includes--
                            ``(i) such taxable year, and
                            ``(ii) the 3 preceding taxable years.''.
    (c) Treatment as Refundable.--
            (1) Credit moved to subpart relating to refundable 
        credits.--
                    (A) In general.--The Internal Revenue Code of 1986 
                is amended--
                            (i) by redesignating section 25B, as 
                        amended by this Act, as section 36C; and
                            (ii) by moving such section, as so 
                        redesignated, from subpart A of part IV of 
                        subchapter A of chapter 1 to the location 
                        immediately before section 37 in subpart C of 
                        part IV of subchapter A of chapter 1.
                    (B) Technical amendments.--
                            (i) The table of sections for subpart A of 
                        part IV of subchapter A of chapter 1 is amended 
                        by striking the item relating to section 25B.
                            (ii) The table of sections for subpart C of 
                        part IV of subchapter A of chapter 1 is amended 
                        by inserting after the item relating to section 
                        36B the following new item:

``Sec. 36C. Elective deferrals and IRA contributions by certain 
                            individuals.''.
            (2) Mandatory deposit into qualified account.--
                    (A) No reduction of tax.--Subsection (a) of section 
                36C, as moved and redesignated by paragraph (1), is 
                amended by striking ``against the tax imposed by this 
                subtitle''.
                    (B) Deposit into qualified account.--Section 36C, 
                as so moved and redesignated, is amended by adding at 
                the end the following new subsection:
    ``(g) Deposit Into Qualified Account.--
            ``(1) In general.--Any amount allowed as a credit under 
        subsection (a) shall not be allowed as a credit against any tax 
        imposed by this subtitle but instead shall be treated as an 
        overpayment under section 6401(b) and--
                    ``(A) shall be paid on behalf of the individual 
                taxpayer to a Roth IRA or a designated Roth account 
                (within the meaning of section 402A) under an 
                applicable retirement plan designated by the individual 
                to be invested in a manner designated by the 
                individual, except that in the case of a joint return 
                each spouse shall be entitled to designate an 
                applicable retirement plan and investments with respect 
                to payments attributable to such spouse, or
                    ``(B) in the case of a taxpayer who does not 
                properly designate an applicable retirement plan in a 
                timely manner or who designates an applicable 
                retirement plan which does not accept such amount in a 
                timely manner, shall be paid or credited on behalf of 
                the individual taxpayer in a manner determined under 
                rules prescribed by the Secretary which provides 
                treatment comparable to the treatment under 
                subparagraph (A).
            ``(2) Applicable retirement plan.--For purposes of this 
        subsection, the term `applicable retirement plan' means a plan 
        which elects to accept deposits under this subsection and which 
        is described in clause (iii), (iv), (v), or (vi) of section 
        402(c)(8)(B) or in section 408A(b).
            ``(3) Treatment of payments.--In the case of any payment 
        under this subsection--
                    ``(A) except as otherwise provided in this section 
                or by the Secretary under regulations, such payment 
                shall be treated in the same manner as a payment made 
                by the individual on whose behalf such payment was 
                made,
                    ``(B) such payment shall not be treated as income 
                to the taxpayer, and
                    ``(C) such payment shall not be taken into account 
                with respect to any applicable limitation under 
                sections 402(g)(1), 403(b), 408(a)(1), 408(b)(2)(B), 
                408A(c)(2), 414(v)(2), 415(c), or 457(b)(2).
            ``(4) Treatment of qualified plans, etc.--A plan or 
        arrangement to which a payment is made under this subsection 
        shall not be treated as violating any requirement under section 
        401, 403, 408, or 457 solely by reason of accepting such 
        payment.
            ``(5) Erroneous credits.--If any payment is erroneously 
        paid under this subsection, the amount of such erroneous 
        payment shall be treated as an underpayment of tax.''.
    (d) Regulation and Promotion.--The Secretary of the Treasury (or 
the Secretary's delegate) shall take such steps as the Secretary (or 
delegate) determines are necessary and appropriate to increase public 
awareness of the credit provided under section 36C of the Internal 
Revenue Code of 1986 (as amended and redesignated by this section).
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 105. QUALIFIED CASH OR DEFERRED ARRANGEMENTS MUST ALLOW LONG-TERM 
              EMPLOYEES WORKING MORE THAN 500 BUT LESS THAN 1,000 HOURS 
              PER YEAR TO PARTICIPATE.

    (a) Participation Requirement.--
            (1) In general.--Subparagraph (D) of section 401(k)(2) is 
        amended to read as follows:
                    ``(D) 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--
                            ``(i) the period permitted under section 
                        410(a)(1) (determined without regard to 
                        subparagraph (B)(i) thereof), or
                            ``(ii) subject to the provisions of 
                        paragraph (16), the first period of 2 
                        consecutive 12-month periods during each of 
                        which the employee has at least 500 hours of 
                        service.''.
            (2) Special rules.--Section 401(k), as amended by this Act, 
        is further amended by adding at the end the following new 
        paragraph:
            ``(16) Special rules for participation requirement for 
        long-term, part-time workers.--For purposes of paragraph 
        (2)(D)(ii)--
                    ``(A) Age requirement must be met.--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.
                    ``(B) Nondiscrimination and top-heavy rules not to 
                apply.--
                            ``(i) Nondiscrimination rules.--In the case 
                        of employees who are eligible to participate in 
                        the arrangement solely by reason of paragraph 
                        (2)(D)(ii)--
                                    ``(I) 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
                                    ``(II) an employer may elect to 
                                exclude such employees from the 
                                application of subsection (a)(4), 
                                paragraph (3), subsection (m)(2), and 
                                section 410(b).
                            ``(ii) Top-heavy rules.--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.
                            ``(iii) Vesting.--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.
                            ``(iv) Employees who become full-time 
                        employees.--This subparagraph 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) of this subsection.
                    ``(C) Exception for employees under collectively 
                bargained plans, etc.--Paragraph (2)(D)(ii) shall not 
                apply to employees described in section 410(b)(3).
                    ``(D) Special rules.--
                            ``(i) Time of participation.--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).
                            ``(ii) 12-month periods.--12-month periods 
                        shall be determined in the same manner as under 
                        the last sentence of section 410(a)(3)(A).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018, except that, for 
purposes of section 401(k)(2)(D)(ii) of the Internal Revenue Code of 
1986 (as added by such amendments), 12-month periods beginning before 
January 1, 2019, shall not be taken into account.

SEC. 106. SEPARATE APPLICATION OF TOP HEAVY RULES TO DEFINED 
              CONTRIBUTION PLANS COVERING PART-TIME EMPLOYEES.

    (a) In General.--Paragraph (2) of section 416(c) is amended by 
adding at the end the following:
                    ``(C) Separate application to employees not meeting 
                age and service requirements.--If employees not meeting 
                the age or service requirements of section 410(a)(1) 
                (without regard to subparagraph (B) thereof) are 
                covered under a plan of the employer which meets the 
                requirements of paragraphs (A) and (B) separately with 
                respect to such employees, such employees may be 
                excluded from consideration in determining whether any 
                plan of the employer meets the requirements of 
                subparagraphs (A) and (B).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to plan years beginning after the date of the enactment of this 
Act.

SEC. 107. OPPORTUNITY TO CLAIM THE SAVER'S CREDIT ON FORM 1040EZ.

    The Secretary of the Treasury shall modify the forms for the return 
of tax of individuals in order to allow individuals claiming the credit 
under section 36C of the Internal Revenue Code of 1986 (as moved and 
redesignated by this Act) to file (and claim such credit on) Form 
1040EZ.

SEC. 108. 60-DAY ROLLOVER TO INHERITED INDIVIDUAL RETIREMENT PLAN OF 
              NONSPOUSE BENEFICIARY.

    (a) In General.--Section 402(c)(11) is amended by redesignating 
subparagraph (B) as subparagraph (C) and by striking subparagraph (A) 
and inserting the following:
                    ``(A) In general.--If--
                            ``(i) any portion of a distribution 
                        attributable to an employee is paid after the 
                        death of the employee to an individual who is a 
                        designated beneficiary (as defined by section 
                        401(a)(9)(E)) of the employee and who is not 
                        the surviving spouse of the employee, and
                            ``(ii) such portion is transferred or paid 
                        to an individual retirement plan in a transfer 
                        or payment meeting the requirements of 
                        subparagraph (B),
                the preceding provisions of this subsection shall apply 
                to such distribution in the same manner as if the 
                designated beneficiary were the employee.
                    ``(B) Requirements for transfer of distribution.--
                The requirements of this subparagraph are met with 
                respect to the portion of any distribution if--
                            ``(i) such portion is transferred or paid 
                        to an individual retirement plan described in 
                        clause (i) or (ii) of paragraph (8)(B) 
                        established for the purposes of receiving the 
                        distribution on behalf of the designated 
                        beneficiary,
                            ``(ii) such individual retirement plan is 
                        established as an inherited individual 
                        retirement account or individual retirement 
                        annuity (within the meaning of section 
                        408(d)(3)(C)), whichever is applicable, and
                            ``(iii) notice is provided to the trustee, 
                        insurance company, or other provider of the 
                        individual retirement plan that such individual 
                        retirement plan is being established as an 
                        inherited individual retirement account or 
                        individual retirement annuity.
                Section 401(a)(9)(B) (other than clause (iv) thereof) 
                shall apply to such individual retirement plan.''.
    (b) Rollover Treatment for Inherited Accounts.--Section 
408(d)(3)(C) is amended by adding at the end the following:
                            ``(iii) Exception for qualified transfers 
                        to another inherited account.--Clause (i) shall 
                        not apply to any portion of a distribution from 
                        an inherited individual retirement account or 
                        inherited individual retirement annuity if such 
                        portion is paid to another such individual 
                        retirement plan or annuity, but only if the 
                        requirements of subparagraphs (A), (B), and (E) 
                        of this paragraph and the requirements of 
                        section 402(c)(11)(B) are met with respect to 
                        such transfer or payment.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2018.

SEC. 109. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY 
              DISTRIBUTIONS.

    (a) Increase in Age for Required Beginning Date.--
            (1) In general.--Subclause (I) of section 401(a)(9)(C)(i) 
        is amended to read as follows:
                                    ``(I) the first calendar year in 
                                which the employee attains the 
                                applicable age for such calendar year, 
                                or''.
            (2) Special rule for owners.--Subclause (I) of section 
        401(a)(9)(C)(ii) is amended by striking ``in which the employee 
        attains age 70\1/2\'' and inserting ``described in clause 
        (i)(I) with respect to the employee''.
    (b) Mandatory Distribution Age.--Paragraph (9) of section 401(a) is 
amended by inserting at the end the following new subparagraph:
                    ``(H) Applicable age.--For purposes of this 
                paragraph--
                            ``(i) In general.--The applicable age is--
                                    ``(I) for calendar years before 
                                2023, age 70\1/2\,
                                    ``(II) for calendar years 2023, 
                                2024, 2025, 2026, 2027, 2028, and 2029, 
                                age 72, and
                                    ``(III) for calendar years after 
                                2029, age 75.
                            ``(ii) Transition rule.--If, as of a 
                        calendar year, an employee has not attained the 
                        applicable age with respect to such year, such 
                        employee shall be treated as not having 
                        attained the applicable age under this 
                        paragraph for such year without regard to 
                        whether, in a previous calendar year, the 
                        employee had attained the applicable age with 
                        respect to such previous calendar year.''.
    (c) Spouse Beneficiaries.--Subclause (I) of section 
401(a)(9)(B)(iv) is amended by striking ``age 70\1/2\'' and inserting 
``the applicable age''.
    (d) Conforming Amendment.--Subsection (b) of section 408 is amended 
by striking ``age 70\1/2\'' and inserting ``the applicable age 
determined under section 401(a)(9)(H) with respect to such 
individual''.
    (e) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2018.

SEC. 110. UPDATING OF MORTALITY TABLES FOR MINIMUM REQUIRED 
              DISTRIBUTIONS.

    Section 401(a)(9), as amended by this Act, is further amended by 
adding at the end the following new subparagraph:
                    ``(I) Mortality tables.--
                            ``(i) Initial update.--Not later than 1 
                        year after the date of the enactment of this 
                        subparagraph, the Secretary shall either 
                        update, or provide new tables to replace, the 
                        mortality tables used as of such date for 
                        purposes of this paragraph.
                            ``(ii) Periodic revision.--The Secretary 
                        shall (at least every 10 years) make revisions 
                        in, or provide new tables to replace, any table 
                        in effect under this subparagraph to reflect 
                        the actual experience of pension plans and 
                        projected trends in such experience.
                            ``(iii) Effective date.--Any table 
                        prescribed under this subparagraph shall apply 
                        to plan years beginning after the date which is 
                        1 year after publication of the final table.''.

SEC. 111. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN 
              STARTUP COSTS OF CERTAIN EMPLOYERS.

    (a) In General.--Subsection (a) of section 45E is amended by 
inserting before the period at the end the following: ``(75 percent of 
such costs in the case of an eligible employer, as determined by 
substituting `25' for `100' in section 408(p)(2)(C)(i))''.
    (b) Increase.--Paragraph (1) of section 45E(b) is amended to read 
as follows:
            ``(1) for the first credit year and each of the 2 taxable 
        years immediately following the first credit year, the greater 
        of--
                    ``(A) $500, or
                    ``(B) the lesser of--
                            ``(i) $250 for each employee of the 
                        eligible employer who is not a highly 
                        compensated employee (as defined in section 
                        415(q)) and who is eligible to participate in 
                        the eligible employer plan maintained by the 
                        eligible employer, or
                            ``(ii) $5,000, and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 112. CREDIT FOR RE-ENROLLMENT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1, 
as amended by this Act, is further amended by adding at the end the 
following new section:

``SEC. 45U. CREDIT FOR RE-ENROLLMENT PROVISIONS IN PLANS PROVIDED BY 
              SMALL EMPLOYERS.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer, the retirement re-enrollment credit determined under 
this section for any taxable year is an amount equal to--
            ``(1) $500 for any taxable year occurring during the credit 
        period, and
            ``(2) zero for any other taxable year.
    ``(b) Credit Period.--For purposes of subsection (a)--
            ``(1) In general.--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 a re-
        enrollment provision in 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.
            ``(2) Maintenance of arrangement.--No taxable year with 
        respect to an employer shall be treated as occurring within the 
        credit period unless the provision described in paragraph (1) 
        is included in the plan for such year.
    ``(c) Eligible Employer.--For purposes of this section, the term 
`eligible employer' has the meaning given such term in section 
408(p)(2)(C)(i).
    ``(d) Re-Enrollment Provision.--For purposes of this section, the 
term `re-enrollment provision' means a provision of an eligible 
automatic contribution arrangement under which--
            ``(1) In general.--Each employee eligible to participate in 
        the arrangement who is not contributing or is contributing less 
        than the percentage applicable to an eligible employee in the 
        first year of eligibility is treated as being in such first 
        year of eligibility in each applicable year with respect to the 
        employee.
            ``(2) Election out.--The election treated as having been 
        made under paragraph (1) shall cease to apply with respect to 
        any employee if such employee makes an affirmative election--
                    ``(A) to not have such contributions made, or
                    ``(B) to make elective contributions at a level 
                specified in such affirmative election.
            ``(3) Applicable year every third year.--
                    ``(A) In general.--For purposes of this section, 
                the term `applicable year' means, with respect to an 
                employee, such employee's first plan year of 
                eligibility under the arrangement, and all subsequent 
                plan years of eligibility.
                    ``(B) Exception.--Following any applicable year of 
                an employee (determined after the application of this 
                subparagraph), the plan may elect to treat the next 1 
                or 2 plan years as not being applicable years with 
                respect to such employee.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38, as amended by this Act, is further amended by striking 
``plus'' at the end of paragraph (32), by striking the period at the 
end of paragraph (33) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
            ``(34) in the case of an eligible employer (as defined in 
        section 45U(c)), the retirement re-enrollment credit determined 
        under section 45U(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 is amended by inserting after the 
item relating to section 45T the following new item:

``Sec. 45U. Credit for re-enrollment provisions in plans provided by 
                            small employers.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 113. TREATMENT OF STUDENT LOAN PAYMENTS AS ELECTIVE DEFERRALS FOR 
              PURPOSES OF MATCHING CONTRIBUTIONS.

    (a) In General.--Subparagraph (A) of section 401(m)(4) is amended 
by striking ``and'' at the end of clause (i), by striking the period at 
the end of clause (ii) and inserting ``, and'', and by adding at the 
end the following new clause:
                            ``(iii) subject to the requirements of 
                        paragraph (14), any employer contribution made 
                        to a defined contribution plan on behalf of an 
                        employee on account of a qualified student loan 
                        payment.''.
    (b) Qualified Student Loan Payment.--Paragraph (4) of section 
401(m) is amended by adding at the end the following new subparagraph:
                    ``(D) Qualified student loan payment.--The term 
                `qualified student loan payment' means a payment made 
                by an employee in repayment of a qualified education 
                loan (as defined in section 221(d)(1)) incurred to pay 
                qualified higher education expenses of the employee, 
                but only--
                            ``(i) to the extent such payments in the 
                        aggregate for the year do not exceed an amount 
                        equal to--
                                    ``(I) the limitation applicable 
                                under section 402(g) for the year (or, 
                                if lesser, the employee's compensation 
                                (as defined in section 415(c)(3)) for 
                                the year), reduced by
                                    ``(II) the elective deferrals made 
                                by the employee for such year, and
                            ``(ii) if the employee provides evidence of 
                        such loan and such payments to the employer 
                        making the matching contribution under this 
                        paragraph.
                For purposes of this subparagraph, the term `qualified 
                higher education expenses' means the cost of attendance 
                (as defined in section 472 of the Higher Education Act 
                of 1965, as in effect on the day before the date of the 
                enactment of the Taxpayer Relief Act of 1997) at an 
                eligible educational institution (as defined in section 
                221(d)(2)).''.
    (c) Matching Contributions for Qualified Student Loan Payments.--
Subsection (m) of section 401, as amended by this Act, is further 
amended by redesignating paragraph (14) as paragraph (15), and by 
inserting after paragraph (13) the following new paragraph:
            ``(14) Matching contributions for qualified student loan 
        payments.--
                    ``(A) In general.--For purposes of paragraph 
                (4)(A)(iii), an employer contribution made to a defined 
                contribution plan on account of a qualified student 
                loan payment shall be treated as a matching 
                contribution for purposes of this title if--
                            ``(i) the plan provides matching 
                        contributions on account of elective deferrals 
                        at the same rate as contributions on account of 
                        qualified student loan payments,
                            ``(ii) the plan provides matching 
                        contributions on account of qualified student 
                        loan payments only on behalf of employees 
                        otherwise eligible to make elective deferrals, 
                        and
                            ``(iii) under the plan, all employees 
                        eligible to receive matching contributions on 
                        account of elective deferrals are eligible to 
                        receive matching contributions on account of 
                        qualified student loan payments.
                    ``(B) Treatment for purposes of nondiscrimination 
                rules, etc.--
                            ``(i) Nondiscrimination rules.--For 
                        purposes of subparagraph (A)(iii), subsection 
                        (a)(4), and section 410(b), matching 
                        contributions described in paragraph 
                        (4)(A)(iii) shall not fail to be treated as 
                        available to an employee solely because such 
                        employee does not have debt incurred under a 
                        qualified education loan (as defined in section 
                        221(d)(1)).
                            ``(ii) Student loan payments not treated as 
                        plan contribution.--Except as provided in 
                        clause (iii), a qualified student loan payment 
                        shall not be treated as a contribution to a 
                        plan under this title.
                            ``(iii) Matching contribution rules.--
                        Solely for purposes of meeting the requirements 
                        of paragraph (11)(B), (12), or (13) of this 
                        subsection, or paragraph (11)(B)(i)(II), 
                        (12)(B), (13)(D), or (15)(D) of subsection (k), 
                        a plan may treat a qualified student loan 
                        payment as an elective deferral or an elective 
                        contribution, whichever is applicable.
                    ``(C) Regulatory authority.--The Secretary shall 
                prescribe regulations--
                            ``(i) setting forth the conditions under 
                        which a plan administrator may rely upon 
                        evidence submitted by an employee of qualified 
                        student loan payments, and
                            ``(ii) permitting a plan to make matching 
                        contributions for qualified student loan 
                        repayments at a different frequency than 
                        matching contributions are otherwise made under 
                        the plan, provided that the frequency is not 
                        less than annually.''.
    (d) Simple Retirement Accounts.--Paragraph (2) of section 408(p) is 
amended by adding at the end the following new subparagraph:
                    ``(F) Matching contributions for qualified student 
                loan payments.--
                            ``(i) In general.--Subject to the rules of 
                        clause (iii), an arrangement shall not fail to 
                        be treated as meeting the requirements of 
                        subparagraph (A)(iii) solely because under the 
                        arrangement, solely for purposes of such 
                        subparagraph, qualified student loan payments 
                        are treated as amounts elected by the employee 
                        under subparagraph (A)(i)(I) to the extent such 
                        payments do not exceed--
                                    ``(I) the applicable dollar amount 
                                under subparagraph (E) (after 
                                application of section 414(v)) for the 
                                year (or, if lesser, the employee's 
                                compensation (as defined in section 
                                415(c)(3)) for the year), reduced by
                                    ``(II) any other amounts elected by 
                                the employee under subparagraph 
                                (A)(i)(I) for the year.
                            ``(ii) Qualified student loan payment.--For 
                        purposes of this subparagraph--
                                    ``(I) In general.--The term 
                                `qualified student loan payment' means 
                                a payment made by an employee in 
                                repayment of a qualified education loan 
                                (as defined in section 221(d)(1)) 
                                incurred to pay qualified higher 
                                education expenses of the employee, but 
                                only if the employee provides evidence 
                                of such loan and such payments to the 
                                employer making the matching 
                                contribution.
                                    ``(II) Qualified higher education 
                                expenses.--The term `qualified higher 
                                education expenses' has the same 
                                meaning as when used in section 
                                401(m)(4)(D).
                            ``(iii) Applicable rules.--Clause (i) shall 
                        apply to an arrangement only if, under the 
                        arrangement--
                                    ``(I) matching contributions on 
                                account of qualified student loan 
                                payments are provided only on behalf of 
                                employees otherwise eligible to elect 
                                contributions under subparagraph 
                                (A)(i)(I), and
                                    ``(II) all employees otherwise 
                                eligible to participate in the 
                                arrangement are eligible to receive 
                                matching contributions on account of 
                                qualified student loan payments.''.
    (e) 403(b) Plans.--Subparagraph (A) of section 403(b)(12) is 
amended by adding at the end the following: ``The fact that the 
employer offers matching contributions on account of qualified student 
loan payments as described in section 401(m)(14) shall not be taken 
into account in determining whether the arrangement satisfies the 
requirements of clause (ii) (and any regulation thereunder).''.
    (f) Effective Date.--The amendments made by this section shall 
apply to contributions made for years beginning after December 31, 
2019.

SEC. 114. TREATMENT OF QUALIFIED RETIREMENT PLANNING SERVICES.

    (a) In General.--Subsection (m) of section 132 is amended by adding 
at the end the following new paragraph:
            ``(4) No constructive receipt.--No amount shall be included 
        in the gross income of any employee solely because the employee 
        may choose between any qualified retirement planning services 
        and compensation which would otherwise be includible in the 
        gross income of such employee. The preceding sentence shall 
        apply to highly compensated employees only if the choice 
        described in such sentence is available on substantially the 
        same terms to each member of the group of employees normally 
        provided education and information regarding the employer's 
        qualified employer plan.''.
    (b) Definition.--Paragraph (1) of section 132(m) is amended by 
inserting before the period the following: ``, including--
                    ``(A) advice regarding investments in any 
                arrangement described in section 219(g)(5) (without 
                regard to the last sentence thereof), and
                    ``(B) retirement advice regarding investments held 
                outside such an arrangement.''.
    (c) Conforming Amendments.--
            (1) Section 403(b)(3)(B) is amended by inserting 
        ``132(m)(4),'' after ``132(f)(4),''.
            (2) Section 414(s)(2) is amended by inserting 
        ``132(m)(4),'' after ``132(f)(4),''.
            (3) Section 415(c)(3)(D)(ii) is amended by inserting 
        ``132(m)(4),'' after ``132(f)(4),''.
    (d) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2018.

SEC. 115. ALLOW ADDITIONAL NONELECTIVE CONTRIBUTIONS TO SIMPLE PLANS.

    (a) In General.--
            (1) Modification to definition.--Subparagraph (A) of 
        section 408(p)(2) is amended by striking ``and'' at the end of 
        clause (iii), by redesignating clause (iv) as clause (v), and 
        by inserting after clause (iii) the following new clause:
                            ``(iv) the employer may make nonelective 
                        contributions of a uniform percentage (up to 10 
                        percent) of compensation for each employee who 
                        is eligible to participate in the arrangement 
                        and who has at least $5,000 of compensation 
                        from the employer for the year, and''.
            (2) Limitation.--Subparagraph (A) of section 408(p)(2) is 
        amended by adding at the end the following: ``The compensation 
        taken into account under clause (iv) for any year shall not 
        exceed the limitation in effect for such year under section 
        401(a)(17).''.
            (3) Overall dollar limit on contributions.--Paragraph (8) 
        of section 408(p) is amended to read as follows:
            ``(8) Coordination with maximum limitation under subsection 
        (a).--In the case of any simple retirement account, subsections 
        (a)(1) and (b)(2) shall be applied by substituting for `the 
        dollar amount in effect under section 219(b)(1)(A)' the 
        following: `the sum (but not to exceed 50 percent of the amount 
        in effect under section 415(c)(1)(A) (except as provided in 
        section 414(v))) of the dollar amount in effect under paragraph 
        (2)(A)(ii) of this subsection; the employer contribution 
        required under paragraph (2)(A)(iii) or (2)(B)(i) of this 
        subsection, whichever is applicable; and the employer 
        contribution made on behalf of the employee under paragraph 
        (2)(A)(iv) of this subsection'.''.
    (b) Conforming Amendments.--
            (1) Section 408(p)(2)(A)(v), as redesignated by subsection 
        (a), is amended by striking ``or (iii)'' and inserting ``, 
        (iii), or (iv)''.
            (2) Paragraph (8) of section 408(p) is amended by inserting 
        ``, the employer contribution actually made under paragraph 
        (2)(A)(iv) of this subsection,'' after ``paragraph (2)(A)(ii) 
        of this subsection''.
            (3) Section 401(k)(11)(B)(i) is amended by striking ``and'' 
        at the end of subclause (II), by redesignating subclause (III) 
        as subclause (V), and by inserting after subclause (II) the 
        following new subclauses:
                                    ``(III) the employer may make 
                                nonelective contributions of a uniform 
                                percentage (up to 10 percent) of 
                                compensation for each employee who is 
                                eligible to participate in the 
                                arrangement and who has at least $5,000 
                                of compensation from the employer for 
                                the year,
                                    ``(IV) contributions on behalf of 
                                any employee for any year may not 
                                exceed 50 percent of the amount in 
                                effect under section 415(c)(1)(A) 
                                (except as provided in section 414(v)), 
                                and''.
            (4) Section 401(k)(11)(B)(i)(V), as redesignated by 
        paragraph (3), is amended by striking ``or (II)'' and inserting 
        ``, (II), or (III)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2018.

SEC. 116. REFORM OF THE MINIMUM PARTICIPATION RULE.

    (a) In General.--Subparagraph (H) of section 401(a)(26) is amended 
by adding at the end the following: ``Not later than December 31, 2019, 
the Secretary shall issue final regulations under which this paragraph 
may be applied separately to bona fide separate subsidiaries or 
divisions.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of enactment of this Act.

SEC. 117. EXPANSION OF EMPLOYEE PLANS COMPLIANCE RESOLUTION SYSTEM.

    (a) In General.--Except as otherwise provided in regulations 
prescribed by the Secretary of the Treasury or the Secretary's delegate 
(referred to in this section as the ``Secretary''), any inadvertent 
failure to comply with the rules applicable under section 401(a), 
403(a), 403(b), 408(p), or 408(k) of the Internal Revenue Code of 1986 
may be self-corrected under the Employee Plans Compliance Resolution 
System (as described in Revenue Procedure 2018-52 or any successor 
guidance), except to the extent that such failure was identified by the 
Secretary prior to any actions which demonstrate a commitment to 
implement a self-correction. Revenue Procedure 2018-52 is deemed 
amended as of the date of the enactment of this Act to provide that the 
correction period under section 9.02 of such Revenue Procedure (or any 
successor provision) for an inadvertent failure is indefinite and has 
no last day, other than with respect to failures identified by the 
Secretary prior to any self-correction as described in the preceding 
sentence.
    (b) Loan Error.--The Secretary of Labor shall treat any loan error 
corrected pursuant to subsection (a) as meeting the requirements of the 
Voluntary Fiduciary Correction Program of the Department of Labor.
    (c) EPCRS for IRAs.--The Secretary shall expand the Employee Plans 
Compliance Resolution System to allow custodians of individual 
retirement plans to address inadvertent failures for which the owner of 
an individual retirement plan was not at fault, including (but not 
limited to)--
            (1) waivers of the excise tax which would otherwise apply 
        under section 4974 of the Internal Revenue Code of 1986;
            (2) under the self-correction component of the Employee 
        Plans Compliance Resolution System, waivers of the 60-day 
        deadline for a rollover where the deadline is missed for 
        reasons beyond the reasonable control of the account owner; and
            (3) rules permitting a nonspouse beneficiary to return 
        distributions to an inherited individual retirement plan 
        described in section 408(d)(3)(C) of the Internal Revenue Code 
        of 1986 in a case where, due to an inadvertent error by a 
        service provider, the beneficiary had reason to believe that 
        the distribution could be rolled over without inclusion in 
        income of any part of the distributed amount.
    (d) Required Minimum Distribution Corrections.--The Secretary shall 
expand the Employee Plans Compliance Resolution System to allow plans 
to which such system applies and custodians and owners of individual 
retirement plans to self-correct, without an excise tax, any 
inadvertent failures pursuant to which a distribution is made no more 
than 180 days after it was required to be made.
    (e) Additional Safe Harbors.--The Secretary shall expand the 
Employee Plans Compliance Resolution System (as described in Revenue 
Procedure 2018-52 or any successor guidance) to provide additional safe 
harbor means of correcting inadvertent failures described in subsection 
(a), including safe harbor means of calculating the earnings which must 
be restored to a plan in cases where plan assets have been depleted by 
reason of an inadvertent failure.
    (f) Definitions and Special Rules.--
            (1) Inadvertent failure.--For purposes of this section--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``inadvertent failure'' means a failure 
                that occurs despite the existence of practices and 
                procedures which--
                            (i) satisfy the standards set forth in 
                        section 4.04 of Revenue Procedure 2018-52 (or 
                        any successor provision); or
                            (ii) satisfy similar standards in the case 
                        of an individual retirement plan.
                    (B) Correction by owner of individual retirement 
                plan.--In the case of a correction by an owner of an 
                individual retirement plan under subsection (d), the 
                term ``inadvertent failure'' means a failure due to 
                reasonable cause.
            (2) Plan loan corrections.--In the case of an inadvertent 
        failure relating to a loan to a participant from a plan, such 
        failure may be self-corrected under subsection (a) according to 
        the rules of section 6.07 of Revenue Procedure 2018-52 (or any 
        successor provision), including the provisions related to 
        whether a deemed distribution must be reported on Form 1099-R.

SEC. 118. ENHANCEMENT OF 403(B) PLANS.

    (a) In General.--
            (1) Permitted investments.--Clause (i) of section 
        403(b)(7)(A) is amended to read as follows:
                            ``(i) the amounts to be held in that 
                        custodial account are invested in regulated 
                        investment company stock or a group trust 
                        intended to satisfy the requirements of 
                        Internal Revenue Service Revenue Ruling 81-100 
                        (or any successor guidance), and''.
            (2) Conforming amendment.--The heading of paragraph (7) of 
        section 403(b) is amended by striking ``for regulated 
        investment company stock''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to amounts invested after December 31, 2018.
    (b) Amendments to the Investment Company Act of 1940.--Section 
3(c)(11) of the Investment Company Act of 1940 (15 U.S.C. 80a-3(c)(11)) 
is amended--
            (1) by striking ``section 401 of the Internal Revenue Code 
        of 1986; or'' and inserting ``section 401 of the Internal 
        Revenue Code of 1986; or any custodial account meeting the 
        requirements of section 403(b)(7) of the Internal Revenue Code 
        of 1986 if (i) the arrangement is subject to title I of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 
        et seq.), or (ii) any employer making such arrangement 
        available agrees to serve as a fiduciary for the arrangement 
        with respect to the selection of the arrangement's investments; 
        or'';
            (2) by striking ``one or more of such trusts'' and 
        inserting ``one or more of such trusts or accounts'';
            (3) by striking ``of such Act, and'' and inserting ``of 
        such Act,''; and
            (4) by adding before the period at the end the following: 
        ``, and (D) contributions to a custodial account meeting the 
        requirements of section 403(b)(7) of the Internal Revenue Code 
        of 1986 if: (i) the arrangement is subject to title I of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 
        et seq.), or (ii) any employer making such arrangement 
        available agrees to serve as a fiduciary for the arrangement 
        with respect to the selection of the arrangement's 
        investments''.
    (c) Amendments to the Securities Act of 1933.--Section 3(a)(2) of 
the Securities Act of 1933 (15 U.S.C. 77c(a)(2)) is amended--
            (1) by striking ``other than a retirement income account'' 
        in clause (iii) and inserting ``other than a custodial account 
        described in section 403(b)(7) of such Code or a retirement 
        income account'';
            (2) by striking the semicolon at the end and inserting a 
        period; and
            (3) by adding at the end the following: ``Notwithstanding 
        anything to the contrary in this paragraph, the provisions of 
        this title shall not apply to any interest or participation in 
        a single trust fund, or in a collective trust fund maintained 
        by a bank, which interest or participation is issued in 
        connection with a custodial account meeting the requirements of 
        section 403(b)(7) of the Internal Revenue Code of 1986 if: (i) 
        the arrangement is subject to title I of the Employee 
        Retirement Income Security Act of 1974 (29 U.S.C. 1001 et 
        seq.), or (ii) any employer making such arrangement available 
        agrees to serve as a fiduciary for the arrangement with respect 
        to the selection of the arrangement's investments;''.
    (d) Amendments to the Securities Exchange Act of 1934.--Section 
3(a)(12) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(12)) 
is amended--
            (1) in subparagraph (C), by adding before the period at the 
        end the following: ``(other than a custodial account described 
        in section 403(b)(7) of the Internal Revenue Code of 1986)''; 
        and
            (2) by adding at the end the following:
            ``(D) Notwithstanding anything to the contrary in 
        subparagraph (C), the term `qualified plan' shall also include 
        a custodial account meeting the requirements of section 
        403(b)(7) of the Internal Revenue Code of 1986 if: (i) the 
        arrangement is subject to title I of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1001 et seq.), or (ii) 
        any employer making such arrangement available agrees in 
        writing to serve as a fiduciary for the arrangement with 
        respect to the selection of the arrangement's investments.''.

SEC. 119. ELIGIBILITY FOR PARTICIPATION IN RETIREMENT PLANS.

    An individual shall not be precluded from participating in an 
eligible deferred compensation plan by reason of having received a 
distribution under section 457(e)(9) of the Internal Revenue Code of 
1986, as in effect prior to the enactment of the Small Business Job 
Protection Act of 1996.

SEC. 120. SMALL IMMEDIATE FINANCIAL INCENTIVES FOR CONTRIBUTING TO A 
              PLAN.

    (a) In General.--Subparagraph (A) of section 401(k)(4) is amended 
by inserting ``(other than a de minimis financial incentive)'' after 
``any other benefit''.
    (b) Section 403(b) Plans.--Subparagraph (A) of section 403(b)(12), 
as amended by this Act, is further amended by adding at the end the 
following: ``A plan shall not fail to satisfy clause (ii) solely by 
reason of the offering of a de minimis financial incentive for 
employees to elect to have the employer make contributions pursuant to 
a salary reduction agreement.''.
    (c) Exemption From Prohibited Transaction Rules.--Subsection (d) of 
section 4975 is amended by striking ``or'' at the end of paragraph 
(22), by striking the period at the end of paragraph (23) and inserting 
``, or'', and by adding at the end the following new paragraph:
            ``(24) the provision of a de minimis financial incentive 
        described in section 401(k)(4)(A) or 403(b)(12)(A).''.
    (d) Amendment of Employee Retirement Income Security Act of 1974.--
Subsection (b) of section 408 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1108(b)) is amended by adding at the 
end the following new paragraph:
            ``(21) The provision of a de minimis financial incentive 
        described in section 401(k)(4)(A) or 403(b)(12)(A) of the 
        Internal Revenue Code of 1986.''.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to plan years beginning after the date of enactment 
of this Act.

SEC. 121. INDEXING IRA CATCH-UP LIMIT.

    (a) In General.--Subparagraph (C) of section 219(b)(5) is amended 
by adding at the end the following new clause:
                            ``(iii) Indexing of catch-up limitation.--
                        In the case of any taxable year beginning in a 
                        calendar year after 2019, the $1,000 amount 
                        under subparagraph (B)(ii) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2018' for 
                                `calendar year 2016' in subparagraph 
                                (A)(ii) thereof.
                        If any amount after adjustment under the 
                        preceding sentence is not a multiple of $200, 
                        such amount shall be rounded to the next lower 
                        multiple of $200.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2019.

SEC. 122. HIGHER CATCH-UP LIMIT TO APPLY AT AGE 60.

    (a) In General.--
            (1) Plans other than simple plans.--Section 414(v)(2)(B)(i) 
        is amended by inserting the following before the period: 
        ``($10,000, in the case of an eligible participant who has 
        attained age 60 before the close of the taxable year)''.
            (2) Simple plans.--Section 414(v)(2)(B)(ii) is amended by 
        inserting the following before the period: ``($5,000, in the 
        case of an eligible participant who has attained age 60 before 
        the close of the taxable year)''.
    (b) Cost-of-Living Adjustments.--Subparagraph (C) of section 
414(v)(2) is amended by adding at the end the following: ``In the case 
of a year beginning after December 31, 2019, the Secretary shall adjust 
annually the $10,000 amount in subparagraph (B)(i) and the $5,000 
amount in subparagraph (B)(ii) for increases in the cost-of-living at 
the same time and in the same manner as adjustments under the preceding 
sentence; except that the base period taken into account shall be the 
calendar quarter beginning July 1, 2018.''
    (c) Effective Date.--The amendments made by this section shall 
apply to years beginning after December 31, 2018.

                    TITLE II--PRESERVATION OF INCOME

SEC. 201. QUALIFYING LONGEVITY ANNUITY CONTRACTS.

    (a) In General.--Not later than the date which is 1 year after the 
date of the enactment of this Act, the Secretary of the Treasury shall 
amend the regulation issued by the Department of the Treasury relating 
to ``Longevity Annuity Contracts'' (79 Fed. Reg. 37633 (July 2, 2014)), 
as follows:
            (1) Repeal 25-percent premium limit.--The Secretary shall 
        amend Q&A-17(b)(3) of Treas. Reg. section 1.401(a)(9)-6 and 
        Q&A-12(b)(3) of Treas. Reg. section 1.408-8 to eliminate the 
        requirement that premiums for qualifying longevity annuity 
        contracts be limited to 25 percent of an individual's account 
        balance, and to make such corresponding changes to the 
        regulations and related forms as are necessary to reflect the 
        elimination of this requirement.
            (2) Increase dollar limitation.--
                    (A) In general.--The Secretary shall amend Q&A-
                17(b)(2)(i) of Treas. Reg. section 1.401(a)(9)-6 and 
                Q&A-12(b)(2)(i) of Treas. Reg. section 1.408-8 to 
                increase the dollar limitation on premiums for 
                qualifying longevity annuity contracts from $125,000 to 
                $200,000, and to make such corresponding changes to the 
                regulations and related forms as are necessary to 
                reflect this increase in the dollar limitation.
                    (B) Adjustments for inflation.--The Secretary shall 
                amend Q&A-17(d)(2)(i) of Treas. Reg. section 
                1.401(a)(9)-6 to provide that, in the case of calendar 
                years beginning on or after January 1 of the second 
                year following the year of enactment of this Act, the 
                $200,000 dollar limitation (as increased by 
                subparagraph (A)) will be adjusted at the same time and 
                in the same manner as the limits are adjusted under 
                section 415(d) of the Internal Revenue Code of 1986, 
                except that the base period shall be the calendar 
                quarter beginning July 1 of the year of enactment of 
                this Act, and any increase to such dollar limitation 
                which is not a multiple of $10,000 will be rounded to 
                the next lowest multiple of $10,000.
            (3) Facilitate joint and survivor benefits.--The Secretary 
        shall amend Q&A-17(c) of Treas. Reg. section 1.401(a)(9)-6, and 
        make such corresponding changes to the regulations and related 
        forms as are necessary, to provide that, in the case of a 
        qualifying longevity annuity contract which was purchased with 
        joint and survivor annuity benefits for the individual and the 
        individual's spouse which were permissible under the 
        regulations at the time the contract was originally purchased, 
        a divorce occurring after the original purchase and before the 
        annuity payments commence under the contract will not affect 
        the permissibility of the joint and survivor annuity benefits 
        or other benefits under the contract, or require any adjustment 
        to the amount or duration of benefits payable under the 
        contract, provided that any qualified domestic relations order 
        (within the meaning of section 414(p) of the Internal Revenue 
        Code of 1986) or any divorce or separation instrument (within 
        the meaning of section 71(b)(2) of the Internal Revenue Code of 
        1986)--
                    (A) provides that the former spouse is entitled to 
                the survivor benefits under the contract;
                    (B) does not modify the treatment of the former 
                spouse as the beneficiary under the contract who is 
                entitled to the survivor benefits; or
                    (C) does not modify the treatment of the former 
                spouse as the measuring life for the survivor benefits 
                under the contract.
            (4) Permit short free look period.--The Secretary shall 
        amend Q&A-17(a)(4) of Treas. Reg. section 1.401(a)(9)-6 to 
        ensure that such Q&A does not preclude a contract from 
        including a provision under which an employee may rescind the 
        purchase of the contract within a period not exceeding 90 days 
        from the date of purchase.
            (5) Facilitate indexed and variable contracts with 
        guaranteed benefits.--The Secretary shall amend Q&A-17(d)(4) of 
        Treas. Reg. section 1.401(a)(9)-6, and make such corresponding 
        changes to the regulations and related forms as are necessary, 
        to provide that an annuity contract is not treated as a 
        contract described in such Q&A-17(a)(7) to the extent that the 
        contract--
                    (A) either--
                            (i) is a variable contract under section 
                        817(d) of the Internal Revenue Code of 1986; or
                            (ii) is an indexed contract;
                    (B) provides for the possibility of annuity payment 
                increases (but not decreases) based on the investment 
                return and market value of 1 or more segregated asset 
                accounts (in the case of a variable contract) or based 
                on the performance of 1 or more specified indexes (in 
                the case of an indexed contract);
                    (C) provides for a guaranteed minimum level of 
                annuity payments irrespective of such investment 
                return, market value, or performance; and
                    (D) in the event of death before the annuity 
                starting date, provides that any death benefit that is 
                payable in a lump sum is equal to the premiums paid, 
                without reduction for investment return, market value, 
                index performance, surrender charges, market value 
                adjustments, or any other amounts.
        For purposes of the preceding sentence, a downward adjustment 
        to the dollar amount of annuity payments shall not be treated 
        as an impermissible reduction in such payments, provided that 
        the adjustment is made to reflect a change in annuitant that is 
        required or permitted under the Internal Revenue Code of 1986 
        or regulations and the adjustment is based on reasonable 
        actuarial assumptions.
    (b) Effective Dates, Enforcement, and Interpretations.--
            (1) Effective dates.--
                    (A) Paragraphs (1), (2), and (5) of subsection (a) 
                shall be effective with respect to contracts purchased 
                or received in an exchange on or after the date of the 
                enactment of this Act.
                    (B) Paragraphs (3) and (4) of subsection (a) shall 
                be effective with respect to contracts purchased or 
                received in an exchange on or after July 2, 2014.
            (2) Enforcement and interpretations.--Prior to the date on 
        which the Secretary of the Treasury issues final regulations 
        pursuant to subsection (a)--
                    (A) the Secretary shall administer and enforce the 
                law in accordance with subsection (a) and the effective 
                dates in paragraph (1) of this subsection; and
                    (B) taxpayers may rely upon their reasonable good 
                faith interpretations of subsection (a).

SEC. 202. REMOVE REQUIRED MINIMUM DISTRIBUTION BARRIERS FOR LIFE 
              ANNUITIES.

    (a) In General.--Paragraph (9) of section 401(a), as amended by 
this Act, is further amended by adding at the end the following new 
subparagraph:
                    ``(J) Certain increases in payments under a 
                commercial annuity.--Nothing in this section shall 
                prohibit a commercial annuity (within the meaning of 
                section 3405(e)(6)) which is issued in connection with 
                any eligible retirement plan (within the meaning of 
                section 402(c)(8)(B)) from providing 1 or more of the 
                following types of payments on or after the annuity 
                starting date:
                            ``(i) Annuity payments which increase by a 
                        constant percentage, applied not less 
                        frequently than annually, at a rate which is 
                        less than 5 percent per year.
                            ``(ii) A lump sum payment which--
                                    ``(I) results in a shortening of 
                                the payment period with respect to an 
                                annuity or a full or partial 
                                commutation of the future annuity 
                                payments, provided that such lump sum 
                                is determined using reasonable 
                                actuarial methods and assumptions, as 
                                determined in good faith by the issuer 
                                of the contract, or
                                    ``(II) accelerates the receipt of 
                                annuity payments which are scheduled to 
                                be received within the ensuing 12 
                                months, regardless of whether such 
                                acceleration shortens the payment 
                                period with respect to the annuity, 
                                reduces the dollar amount of benefits 
                                to be paid under the contract, or 
                                results in a suspension of annuity 
                                payments during the period being 
                                accelerated.
                            ``(iii) An amount which is in the nature of 
                        a dividend or similar distribution, provided 
                        that the issuer of the contract determines such 
                        amount based on a reasonable comparison of the 
                        actuarial factors assumed when calculating the 
                        initial annuity payments and the issuer's 
                        experience with respect to those factors.
                            ``(iv) A final payment upon death which 
                        does not exceed the excess of--
                                    ``(I) the total amount of the 
                                consideration paid for the annuity 
                                payments, over
                                    ``(II) the aggregate amount of 
                                prior distributions or payments from or 
                                under the contract.''.
    (b) Regulations and Enforcement.--
            (1) Regulations.--Not later than the date which is 1 year 
        after the date of the enactment of this Act, the Secretary of 
        the Treasury shall amend the regulation issued by the 
        Department of the Treasury relating to ``Required Distributions 
        from Retirement Plans'' (69 Fed. Reg. 33288 (June 15, 2004)), 
        and make any necessary corresponding amendments to other 
        regulations, in order to--
                    (A) conform such regulations to the amendments made 
                by subsection (a), including by eliminating the types 
                of payments described in section 401(a)(9)(J) of the 
                Internal Revenue Code of 1986, as added by subsection 
                (a), from the scope of the requirement in Q&A-14(c) of 
                Treas. Reg. section 1.401(a)(9)-6 that the total future 
                expected payments must exceed the total value being 
                annuitized;
                    (B) amend Q&A-14(c) of such section 1.401(a)(9)-6 
                to provide that a commercial annuity which provides an 
                initial payment which is at least equal to the initial 
                payment which would be required from an individual 
                account pursuant to Treas. Reg. section 1.401(a)(9)-5 
                will be deemed to satisfy the requirement in Q&A-14(c) 
                of such section 1.401(a)(9)-6 that the total future 
                expected payments must exceed the total value being 
                annuitized; and
                    (C) amend Q&A-14(e)(3) of Treas. Reg. section 
                1.401(a)(9)-6 to provide that the total future expected 
                payments under a commercial annuity are determined 
                using the tables or other actuarial assumptions which 
                the issuer of the contract actually uses in pricing the 
                premiums and benefits with respect to the contract, 
                provided that such tables or other actuarial 
                assumptions are reasonable.
            (2) Effective date.--The modifications and amendments 
        required under paragraph (1) shall be deemed to have been made 
        as of the date of the enactment of this Act, and as of such 
        date the Secretary of the Treasury shall administer and enforce 
        the law with respect to plan years beginning before, on, or 
        after the date of the enactment of this Act in accordance with 
        the amendments made by subsection (a) and as though the actions 
        which the Secretary is required to take under paragraph (1) had 
        been taken.

SEC. 203. ELIMINATING A PENALTY ON PARTIAL ANNUITIZATION.

    (a) Eliminating a Penalty on Partial Annuitization.--The Secretary 
of the Treasury shall amend the regulations under section 401(a)(9) of 
the Internal Revenue Code of 1986 to provide that if an employee's 
benefit is in the form of an individual account under a defined 
contribution plan, the plan may allow the employee to elect to have the 
amount required to be distributed from such account under such section 
for a year to be calculated as the excess of the total required amount 
for such year over the annuity amount for such year.
    (b) Definitions.--For purposes of this section--
            (1) Total required amount.--The term ``total required 
        amount'', with respect to a year, means the amount which would 
        be required to be distributed under Treas. Reg. section 
        1.401(a)(9)-5 for the year, determined by treating the account 
        balance as of the last valuation date in the immediately 
        preceding calendar year as including the value on that date of 
        all annuity contracts which were purchased with a portion of 
        the account and from which payments are made in accordance with 
        Treas. Reg. section 1.401(a)(9)-6.
            (2) Annuity amount.--The term ``annuity amount'', with 
        respect to a year, is the total amount distributed in the year 
        from all annuity contracts described in paragraph (1).
    (c) Conforming Regulatory Amendments.--The Secretary of the 
Treasury shall amend the regulations under sections 403(b)(10), 
408(a)(6), 408(b)(3), and 457(d)(2) of the Internal Revenue Code of 
1986 to conform to the amendments described in subsection (a). Such 
conforming amendments shall treat all individual retirement plans (as 
defined in section 7701(a)(37) of such Code) which an individual holds 
as the owner, or which an individual holds as a beneficiary of the same 
decedent, as one such plan for purposes of the amendments described in 
subsection (a). Such conforming amendments shall also treat all 
contracts described in section 403(b) of such Code which an individual 
holds as an employee, or which an individual holds as a beneficiary of 
the same decedent, as one such contract for such purposes.
    (d) Effective Date.--The modifications and amendments required 
under subsections (a) and (c) shall be deemed to have been made as of 
the date of the enactment of this Act, and as of such date all 
applicable laws shall be applied in all respects as though the actions 
which the Secretary of the Treasury is required to take under such 
subsections had been taken.

SEC. 204. INSURANCE-DEDICATED EXCHANGE-TRADED FUNDS.

    (a) In General.--Not later than the date which is 1 year after the 
date of the enactment of this Act, the Secretary of the Treasury shall 
amend the regulation issued by the Department of the Treasury relating 
to ``Income Tax; Diversification Requirements for Variable Annuity, 
Endowment, and Life Insurance Contracts,'' 54 Fed. Reg. 8728 (March 2, 
1989), and make any necessary corresponding amendments to other 
regulations, in order to facilitate the use of exchange-traded funds as 
investment options under variable contracts within the meaning of 
section 817(d) of the Internal Revenue Code of 1986, in accordance with 
subsections (b) and (c) of this section.
    (b) Designate Certain Authorized Participants and Market Makers as 
Eligible Investors.--The Secretary of the Treasury shall amend Treas. 
Reg. section 1.817-5(f)(3) to provide that satisfaction of the 
requirements in Treas. Reg. section 1.817-5(f)(2)(i) with respect to an 
exchange-traded fund shall not be prevented by reason of beneficial 
interests in such a fund being held by 1 or more authorized 
participants or market makers.
    (c) Confirm That Similarities to Other Funds Are Irrelevant.--The 
Secretary of the Treasury shall amend Treas. Reg. section 1.817-5(f) to 
confirm that, for Federal income tax purposes, a regulated investment 
company, partnership, or trust (including an exchange-traded fund) that 
satisfies the requirements of Treas. Reg. section 1.817-5(f) (2) and 
(3) shall not be treated as owned by the holder of a variable contract 
pursuant to the principles of Rev. Rul. 81-225, 1981-2 C.B. 12, merely 
because another regulated investment company, partnership, trust, or 
similar investment vehicle follows the same investment strategy, has 
the same investment manager, or holds the same investments.
    (d) Define Relevant Terms.--In amending Treas. Reg. section 1.817-
5(f)(3) in accordance with subsections (b) and (c) of this section, the 
Secretary of the Treasury shall provide definitions consistent with the 
following--
            (1) Exchange-traded fund.--The term ``exchange-traded 
        fund'' means a regulated investment company, partnership, or 
        trust--
                    (A) that is registered with the Securities and 
                Exchange Commission as an open-end investment company 
                or a unit investment trust;
                    (B) the shares of which can be purchased or 
                redeemed directly from the fund only by an authorized 
                participant; and
                    (C) the shares of which are traded throughout the 
                day on a national stock exchange at market prices that 
                may or may not be the same as the net asset value of 
                the shares.
            (2) Authorized participant.--The term ``authorized 
        participant'' means a financial institution that is a member or 
        participant of a clearing agency registered under section 
        17A(b) of the Securities Exchange Act of 1934 that enters into 
        a contractual relationship with an exchange-traded fund 
        pursuant to which the financial institution is permitted to 
        purchase and redeem shares directly from the fund and to sell 
        such shares to third parties, but only if the contractual 
        arrangement or applicable law precludes the financial 
        institution from--
                    (A) purchasing the shares for its own investment 
                purposes rather than for the exclusive purpose of 
                creating and redeeming such shares on behalf of third 
                parties; and
                    (B) selling the shares to third parties who are not 
                market makers or otherwise described in Treas. Reg. 
                section 1.817-5(f) (1) and (3).
            (3) Market maker.--The term ``market maker'' means a 
        financial institution that is a registered broker or dealer 
        under section 15(b) of the Securities Exchange Act of 1934 that 
        maintains liquidity for an exchange-traded fund on a national 
        stock exchange by being always ready to buy and sell shares of 
        such fund on the market, but only if the financial institution 
        is contractually or legally precluded from selling or buying 
        such shares to or from persons who are not authorized 
        participants or otherwise described in Treas. Reg. section 
        1.817-5(f) (2) and (3).
    (e) Effective Dates, Enforcement, and Interpretations.--
            (1) Effective dates.--
                    (A) Subsection (b), and the definitions under 
                subsection (d), shall apply to segregated asset account 
                investments made on or after the date of enactment of 
                this Act.
                    (B) Subsection (c) shall apply to taxable years 
                beginning after December 31, 1983.
            (2) Enforcement and interpretations.--Prior to the date 
        that the Secretary of the Treasury issues final regulations 
        pursuant to this section--
                    (A) the Secretary shall administer and enforce the 
                law in accordance with this section and the effective 
                dates in paragraph (1) of this subsection; and
                    (B) taxpayers may rely upon their reasonable good 
                faith interpretations of the preceding subsections of 
                this section.

  TITLE III--SIMPLIFICATION AND CLARIFICATION OF RETIREMENT PLAN RULES

SEC. 301. REVIEW AND REPORT TO THE CONGRESS RELATING TO REPORTING AND 
              DISCLOSURE REQUIREMENTS.

    (a) Study.--As soon as practicable after the date of the enactment 
of this Act, the Secretary of Labor, the Secretary of the Treasury, and 
the Director of the Pension Benefit Guaranty Corporation shall review 
the reporting and disclosure requirements of--
            (1) title I of the Employee Retirement Income Security Act 
        of 1974, as applicable to pension plans (as defined in section 
        3(2) of such Act); and
            (2) the Internal Revenue Code of 1986, as applicable to 
        qualified retirement plans (as defined in section 4974(c) of 
        such Code, without regard to paragraphs (4) and (5) thereof).
    (b) Report.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Labor, the Secretary of the 
Treasury, and the Director of the Pension Benefit Guaranty Corporation, 
jointly, shall make such recommendations as may be appropriate to the 
appropriate committees of the Congress to consolidate, simplify, 
standardize, and improve the applicable reporting and disclosure 
requirements so as to simplify reporting for plans described in 
subsection (a) and ensure that necessary, comprehensible information is 
provided to participants and beneficiaries of such plans.

SEC. 302. CONSOLIDATION OF DEFINED CONTRIBUTION PLAN NOTICES.

    (a) In General.--Not later than 18 months after the date of the 
enactment of this Act, the Secretary of Labor and the Secretary of the 
Treasury shall adopt final regulations providing that a plan may, but 
is not required to, consolidate 2 or more of the notices required under 
sections 404(c)(5)(B) and 514(e)(3) of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1104(c)(5)(B) and 29 U.S.C. 1144(e)(3)) 
and sections 401(k)(12)(D), 401(k)(13)(E), and 414(w)(4) of the 
Internal Revenue Code of 1986 into a single notice or, to the extent 
provided by such regulations, consolidate such notices with the summary 
plan description or summary of material modifications described in 
section 104(b) of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1024(b)), so long as the combined notice, summary plan 
description, or summary of material modifications includes the required 
content, clearly identifies the issues addressed therein, is provided 
at the time and with the frequency required for each such notice, and 
is presented in a manner that is understandable and does not obscure or 
fail to highlight important points for participants and beneficiaries.
    (b) Consolidation With Summary Plan Description or Summary of 
Material Modifications.--The Secretary of Labor and the Secretary of 
the Treasury may include in the regulations under subsection (a) rules 
to ensure that, to the extent such notices are consolidated with the 
summary plan description or summary of material modifications, the 
presentation, placement, or prominence of the information in such 
notices shall not have the effect of failing to inform participants and 
beneficiaries regarding the information in such notices.

SEC. 303. PERFORMANCE BENCHMARKS FOR ASSET ALLOCATION FUNDS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Labor shall modify the 
regulations under section 404 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1104) to provide that, in the case of a 
designated investment alternative which contains a mix of asset 
classes, a plan administrator may, but is not required to, use a 
benchmark which is a blend of different broad-based securities market 
indices if--
            (1) the blend is reasonably representative of the asset 
        class holdings of the designated investment alternative;
            (2) for purposes of determining the blend's returns for 1-, 
        5-, and 10-calendar year periods (or for the life of the 
        alternative, if shorter), the blend is modified at least once 
        per year to reflect changes in the asset class holdings of the 
        designated investment alternative;
            (3) the blend is presented to participants and 
        beneficiaries in a manner that is reasonably designed to be 
        understandable and helpful; and
            (4) each securities market index which is used for an 
        associated asset class would separately satisfy the 
        requirements of such regulations for such asset class.
    (b) Study.--Not later than December 31, 2019, the Secretary of 
Labor shall deliver a report to the Committees on Ways and Means and 
Education and the Workforce of the House of Representatives and the 
Committees on Finance and Health, Education, Labor, and Pensions of the 
Senate regarding the effectiveness of the benchmarking requirements 
under section 2550.404a-5 of title 29, Code of Federal Regulations.

SEC. 304. PERMIT NONSPOUSAL BENEFICIARIES TO ROLL ASSETS TO PLANS.

    (a) In General.--Section 402(c) is amended by adding at the end the 
following new paragraph:
            ``(12) Distributions to qualified plan of nonspouse 
        beneficiary.--If, with respect to any portion of a distribution 
        from an eligible retirement plan described in paragraph 
        (8)(B)(iii) of a deceased employee, a direct trustee-to-trustee 
        transfer is made to a plan or annuity described in clause 
        (iii), (iv), (v), or (vi) of paragraph (8)(B) of an individual 
        who is a designated beneficiary (as defined by section 
        401(a)(9)(E)) of the employee and who is not the surviving 
        spouse of the employee--
                    ``(A) the transfer shall be treated as an eligible 
                rollover distribution, and
                    ``(B) section 401(a)(9)(B) (other than clause (iv) 
                thereof) shall apply to such plan.''.
    (b) Conforming Amendments.---
            (1) 403(a) plans.--Subparagraph (B) of section 403(a)(4) is 
        amended by striking ``and (11) and (9)'' and inserting ``, (9), 
        (11), and (12)''.
            (2) 403(b) plans.--Subparagraph (B) of section 403(b)(8) is 
        amended by striking `` and (11)'' and inserting ``(11), and 
        (12)''.
            (3) 457 plans.--Subparagraph (B) of section 457(e)(16) is 
        amended by striking `` and (11)'' and inserting ``(11), and 
        (12)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to distributions made after the date of the enactment of this 
Act.

SEC. 305. DEFERRAL AGREEMENTS.

    (a) In General.--Paragraph (4) of section 457(b) of the Internal 
Revenue Code of 1986 is amended by inserting ``, or, in the case of a 
plan of an eligible employer described in subsection (e)(1)(A), before 
the date on which the compensation is (but for the deferral) 
available'' before the comma at the end.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning after December 31, 2018.

SEC. 306. SIMPLIFYING 402(F) NOTICES.

    Not later than December 31, 2018, the Secretary of the Treasury, in 
consultation with the Secretary of Labor and the Director of the 
Pension Benefit Guaranty Corporation, shall simplify the model notices 
issued under section 402(f) of the Internal Revenue Code of 1986 so as 
to facilitate better understanding by recipients of different 
distribution options and corresponding tax consequences. Such model 
notices shall include an explanation of the effect of elections on 
spousal rights.

SEC. 307. GUIDANCE RELATED TO CERTAIN OVERPAYMENT RECOUPMENT PRACTICES.

    (a) Overpayments Under Internal Revenue Code of 1986.--Not later 
than December 31, 2018, the Secretary of the Treasury shall further 
modify the Employee Plans Compliance Resolution System (as described in 
Revenue Procedure 2018-52 or any successor guidance, and modified by 
section 118 of this Act)--
            (1) to clarify that in no case shall any person be required 
        to seek recoupment of an inadvertent overpayment (as defined in 
        such System) from a participant or beneficiary; and
            (2) except as otherwise provided by such Secretary based on 
        the size of the overpayment, to treat a contribution of an 
        inadvertent overpayment which would qualify as a rollover under 
        section 402(c), 403(a)(4), 403(b)(8), or 457(e)(16) of the 
        Internal Revenue Code of 1986 but for the fact that it is an 
        overpayment as a rollover contribution for all purposes under 
        such Code.
No inference is intended regarding the existence in any particular 
situation of an obligation for any person to pay a plan for an 
overpayment.
    (b) Overpayments Under ERISA.--Not later than December 31, 2018, 
the Secretary of Labor shall prescribe rules under which no fiduciary 
of a plan shall have a duty under part 4 of title I of the Employee 
Retirement Income Security Act of 1974 to seek recoupment from a 
participant or beneficiary of an inadvertent overpayment (within the 
meaning of such term as used in subsection (a)), provided that, if a 
repayment is required, such overpayment is paid back by the plan 
sponsor or other person.
    (c) Overpayments by PBGC.--Effective for overpayments made to a 
participant or beneficiary after December 31, 2018, the Pension Benefit 
Guaranty Corporation shall not reduce future payments with respect to 
the same participant or beneficiary by more than 10 percent in 
recouping such overpayment.

SEC. 308. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF SECTION 
              403(B) PLANS.

    (a) In General.--Not later than 6 months after the date of the 
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) of the Internal Revenue Code of 1986--
            (1) the plan administrator or custodian may distribute an 
        individual custodial account in kind to a participant or 
        beneficiary of the plan, and
            (2) the distributed custodial account shall be maintained 
        by the custodian on the same basis as a custodial account to 
        which section 403(b)(7) of such Code applies, 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.
    (b) Treatment of Accounts.--The guidance issued under subsection 
(a) shall also provide that--
            (1) the status of the distributed custodial account under 
        section 403(b)(7) of the Internal Revenue Code of 1986 is 
        generally maintained if the custodial account thereafter 
        adheres to the requirements of section 403(b) of such Code 
        which are in effect at the time of the distribution of the 
        account, and
            (2) a custodial account will not be considered distributed 
        to the participant or beneficiary if the employer has any 
        material retained rights under the account.
For purposes of paragraph (2), an employer shall not be treated as 
retaining material rights over a custodial account solely because the 
custodial account was originally opened under a group contract.
    (c) Distribution Upon Termination.--
            (1) In general.--Paragraph (11) of section 403(b) is 
        amended by striking ``or'' at the end of subparagraph (B), by 
        striking the period at the end of subparagraph (C) and 
        inserting ``, or'', and by inserting after subparagraph (C) the 
        following new subparagraph:
                    ``(D) in the case of a termination of the plan 
                under which contributions were made, without the 
                establishment or maintenance of another plan under this 
                subsection.''.
            (2) Custodial accounts.--Section 403(b)(7)(A)(ii) is 
        amended by striking ``before the employee dies'' and inserting 
        ``before the termination of the plan under which contributions 
        were made to the custodial account (without the establishment 
        or maintenance of another plan under this subsection), or 
        before the employee dies''.
    (d) Effective Date.--The guidance issued under subsections (a) and 
(b), and the amendments made by subsection (c), shall apply to taxable 
years beginning after December 31, 2008.

SEC. 309. PERMIT PLANS TO USE BASE PAY OR RATE OF PAY CALCULATION.

    (a) In General.--Not later than December 31, 2019, the Secretary of 
the Treasury shall modify Treasury Regulation section 1.414(s)-1(d)(3) 
to facilitate the use of the safe harbors in sections 401(k)(12), 
401(k)(13), 401(k)(15), 401(m)(11), 401(m)(12), and 401(m)(13) of the 
Internal Revenue Code of 1986, and in Treasury Regulation section 
1.401(a)(4)-3(b), by plans which use base pay or rate of pay in 
determining contributions or benefits. Such facilitation shall include 
increased flexibility in meeting the definition in section 414(s) of 
such Code in situations where the amount of overtime compensation 
payable in a year can vary significantly.
    (b) Exception.--The Secretary of the Treasury may make any 
modification under subsection (a) inapplicable to plans with respect to 
which, on a consistent basis, overtime is a major component of a 
substantial portion of the employees eligible to participate in the 
plan who are not highly compensated employees (as defined in section 
414(q) of the Internal Revenue Code of 1986).

SEC. 310. ROTH SIMPLE IRAS.

    (a) In General.--Section 408A(f) is amended--
            (1) by striking ``or a simple retirement account'' in 
        paragraph (1); and
            (2) by striking ``or account'' in paragraph (2).
    (b) Conforming Amendments.--Section 408A(c)(2) is amended by adding 
at the end the following flush sentence:
        ``In applying this paragraph to an individual on whose behalf 
        elective employer contributions are made to a simple retirement 
        account, the amount described in subparagraph (A) shall be 
        increased by the amount of elective employer contributions made 
        on behalf of the individual to such account, except to the 
        extent that such contributions exceed the applicable dollar 
        amount (as defined in subsection (p)(2)(E)) or cause the 
        elective deferrals (as defined in section 402(g)(3)) on behalf 
        of such individual to exceed the limitation under section 
        402(g)(1) (taking into account subparagraph (C) thereof).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 311. REDUCTION IN EXCISE TAX ON CERTAIN ACCUMULATIONS IN QUALIFIED 
              RETIREMENT PLANS.

    (a) In General.--Subsection (a) of section 4974 is amended by 
striking ``50 percent'' and inserting ``25 percent''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2018.

SEC. 312. CLARIFICATION OF CATCH-UP CONTRIBUTIONS WITH RESPECT TO 
              SEPARATE LINES OF BUSINESS.

    (a) In General.--Subparagraph (B) of section 414(v)(4) is amended--
            (1) by striking ``except that a plan'' and inserting 
        ``except that--
                            ``(i) a plan'';
            (2) by striking the period at the end and inserting ``, 
        and''; and
            (3) by adding at the end the following new clause:
                            ``(ii) for any year in which an employer 
                        complies with section 410(b) on the basis of 
                        separate lines of business pursuant to section 
                        410(b)(5), the employer may apply subparagraph 
                        (A) for such year separately with respect to 
                        employees in each separate line of business.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 313. CLARIFICATION OF SUBSTANTIALLY EQUAL PERIODIC PAYMENT RULE.

    (a) In General.--Paragraph (4) of section 72(t) is amended by 
inserting at the end the following new subparagraph:
                    ``(C) Rollovers to subsequent plan.--If--
                            ``(i) payments described in paragraph 
                        (2)(A)(iv) are being made from a qualified 
                        retirement plan,
                            ``(ii) a transfer or a rollover from such 
                        qualified retirement plan of all or a portion 
                        of the taxpayer's benefit under the plan is 
                        made to another qualified retirement plan, and
                            ``(iii) distributions from the transferor 
                        and transferee plans would in combination 
                        continue to satisfy the requirements of 
                        paragraph (2)(A)(iv) if they had been made only 
                        from the transferor plan,
                such transfer or rollover shall not be treated as a 
                modification under subparagraph (A)(ii), and compliance 
                with paragraph (2)(A)(iv) shall be determined on the 
                basis of the combined distributions described in clause 
                (iii).''.
    (b) Nonqualified Annuity Contracts.--Paragraph (3) of section 72(q) 
is amended--
            (1) by redesignating clauses (i) and (ii) of subparagraph 
        (B) as subclauses (I) and (II), and by moving such subclauses 2 
        ems to the right;
            (2) by redesignating subparagraphs (A) and (B) as clauses 
        (i) and (ii), by moving such clauses 2 ems to the right, and by 
        adjusting the flush language at the end accordingly;
            (3) by striking ``payments.--If'' and inserting 
        ``payments.--
                    ``(A) In general.--If--''; and
            (4) by adding at the end the following new subparagraph:
                    ``(B) Exchanges to subsequent contracts.--If--
                            ``(i) payments described in paragraph 
                        (2)(D) are being made from an annuity contract,
                            ``(ii) an exchange of all or a portion of 
                        such contract for another contract is made 
                        under section 1035, and
                            ``(iii) the aggregate distributions from 
                        the contracts involved in the exchange continue 
                        to satisfy the requirements of paragraph (2)(D) 
                        as if the exchange had not taken place,
                such exchange shall not be treated as a modification 
                under subparagraph (A)(ii), and compliance with 
                paragraph (2)(D) shall be determined on the basis of 
                the combined distributions described in clause 
                (iii).''.
    (c) Information Reporting.--Section 6724 is amended by inserting at 
the end the following new subsection:
    ``(g) Special Rule for Reporting Certain Additional Taxes.--No 
penalty shall be imposed under section 6721 or 6722 if--
            ``(1) a person makes a return or report under section 
        6047(d) or 408(i) with respect to any distribution,
            ``(2) such distribution is made following a rollover, 
        transfer, or exchange described in section 72(t)(4)(C) or 
        section 72(q)(3)(C),
            ``(3) in making such return or report the person relies 
        upon a certification provided by the taxpayer that the 
        distributions satisfy the requirements of section 
        72(t)(4)(C)(iii) or section 72(q)(3)(B)(iii), as applicable, 
        and
            ``(4) such person does not have actual knowledge that the 
        distributions do not satisfy such requirements.''.
    (d) Safe Harbor for Annuity Payments.--
            (1) Qualified retirement plans.--Subparagraph (A) of 
        section 72(t)(2) is amended by adding at the end the following 
        flush sentence:
                ``For purposes of clause (iv), periodic payments shall 
                not fail to be treated as substantially equal merely 
                because they are amounts received as an annuity, and 
                such periodic payments shall be deemed to be 
                substantially equal if they are payable over a period 
                described in clause (iv) and satisfy the requirements 
                applicable to annuity payments under section 
                401(a)(9).''.
            (2) Other annuity contracts.--Paragraph (2) of section 
        72(q) is amended by adding at the end the following flush 
        sentence:
        ``For purposes of subparagraph (D), periodic payments shall not 
        fail to be treated as substantially equal merely because they 
        are amounts received as an annuity, and such periodic payments 
        shall be deemed to be substantially equal if they are payable 
        over a period described in subparagraph (D) and would satisfy 
        the requirements applicable to annuity payments under section 
        401(a)(9) if such requirements applied.''.
    (e) Effective Dates.--
            (1) In general.--The amendments made by subsections (a), 
        (b), and (c) shall apply to transfers, rollovers, and exchanges 
        occurring on or after the date of the enactment of this Act.
            (2) Annuity payments.--The amendment made by subsection (d) 
        shall apply to distributions commencing on or after the date of 
        the enactment of this Act.
            (3) No inference.--Nothing in the amendments made by this 
        section shall be construed to create an inference with respect 
        to the law in effect prior to the effective date of such 
        amendments.

SEC. 314. CLARIFICATION OF TREATMENT OF DISTRIBUTIONS OF ANNUITY 
              CONTRACTS.

    (a) In General.--Clause (i) of section 402(e)(4)(D) is amended by 
inserting after ``section 401(c)(1).'' at the end of the second 
sentence the following: ``A distribution of an annuity contract from a 
trust or annuity plan referred to in the first sentence of this clause 
may be treated as a part of a lump sum distribution.''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in section 1401(b)(1) of the Small Business Job 
Protection Act of 1996.

SEC. 315. CLARIFICATION REGARDING ELECTIVE DEFERRALS.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of the Treasury shall issue rules 
clarifying that employees who have had a severance from employment may 
make--
            (1) elective deferrals described in subparagraph (A), (B), 
        or (C) of section 402(g)(3) of the Internal Revenue Code of 
        1986 (other than elective deferrals under section 401(k)(11) of 
        such Code);
            (2) elective contributions under an eligible deferred 
        compensation plan described in section 457(b) of such Code; and
            (3) to the extent provided by the Secretary, elective 
        deferrals described in section 402(g)(3)(D) or 401(k)(11) of 
        such Code.
Such rules shall only permit such contributions or deferrals with 
respect to payments of bona fide accumulated sick leave, accumulated 
vacation pay, severance, or back pay. The Secretary may apply such 
other conditions on such contributions or deferrals as are necessary or 
appropriate to carry out the purposes of this section.
    (b) Treatment of Deferrals.--Except as otherwise determined by the 
Secretary to be necessary to carry out the purposes of this section, 
the rules described in subsection (a) shall provide that the 
contributions or deferrals shall, for purposes of section 457 and 
subchapter D of chapter 1 of subtitle A of the Internal Revenue Code of 
1986, be treated as contributions or deferrals made on behalf of active 
employees, not on behalf of former employees.

SEC. 316. TAX TREATMENT OF CERTAIN NONTRADE OR BUSINESS SEP 
              CONTRIBUTIONS.

    (a) In General.--Subparagraph (B) of section 4972(c)(6) is 
amended--
            (1) by striking ``408(p) or'' and inserting ``408(p),''; 
        and
            (2) by inserting ``, or a simplified employee pension 
        (within the meaning of section 408(k))'' after ``401(k)(11))''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2018.

SEC. 317. ALLOW CERTAIN PLAN TRANSFERS AND MERGERS.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) In general.--Section 414 is amended by adding at the 
        end the following new subsection:
    ``(aa) Certain Plan Transfers and Mergers.--
            ``(1) In general.--Under rules prescribed by the Secretary, 
        no amount shall be includible in gross income by reason of--
                    ``(A) a transfer of all or a portion of the account 
                balance of a participant or beneficiary, whether or not 
                vested, from a defined contribution plan described in 
                section 401(a) or section 403(a) of an employer to an 
                annuity contract described in section 403(b) of the 
                same employer,
                    ``(B) a transfer of all or a portion of the account 
                balance of a participant or beneficiary, whether or not 
                vested, from an annuity contract described in section 
                403(b) of an employer to a defined contribution plan 
                described in section 401(a) or section 403(a) of the 
                same employer, or
                    ``(C) a merger of a defined contribution plan 
                described in section 401(a) or section 403(a) of an 
                employer with an annuity contract described in section 
                403(b) of the same employer,
        so long as the transfer or merger does not cause a reduction in 
        the vested benefit or total benefit (including non-vested 
        benefit) of any participant or beneficiary. A plan or contract 
        shall not fail to be considered to be described in sections 
        401(a), 403(a), or 403(b) (as applicable) merely because such 
        plan or contract engages in a transfer or merger described in 
        this paragraph.
            ``(2) Distributions.--Amounts transferred or merged 
        pursuant to paragraph (1) shall be subject to the requirements 
        of paragraphs (3) and (4) and to the distribution requirements 
        under sections 401(a), 403(a), or 403(b) applicable to the 
        transferee or merged plan.
            ``(3) Spousal consent and anti-cutback protection.--In the 
        case of a transfer or merger described in paragraph (1), 
        amounts in the transferee or merged plan that are attributable 
        to the transferor or predecessor plan shall--
                    ``(A)(i) be subject to section 401(a)(11) and 
                section 205 of the Employee Retirement Income Security 
                Act of 1974 to the extent that such sections applied to 
                such amounts in the transferor or predecessor plan, or
                    ``(ii) be required to satisfy the requirements of 
                section 401(a)(11)(B)(iii)(I) and section 
                205(b)(1)(C)(i) of the Employee Retirement Income 
                Security Act of 1974 to the extent that such sections 
                applied to such amounts in the transferor or 
                predecessor plan, and
                    ``(B) be treated as subject to section 411(d)(6) 
                and section 204(g) of the Employee Retirement Income 
                Security Act of 1974 to the extent that such amounts 
                were subject to such sections in the transferor or 
                predecessor plan.
            ``(4) Special rules.--Under rules prescribed by the 
        Secretary, to the extent amounts transferred or merged pursuant 
        to paragraph (1) were otherwise entitled to grandfather 
        treatment under the transferor or predecessor plan, such 
        amounts (and income or loss attributable thereto) shall remain 
        entitled to such treatment under the transferee or merged plan. 
        The rules prescribed by the Secretary shall require that such 
        amounts be separately accounted for by the transferee or merged 
        plan. For purposes of this paragraph, the term `grandfather 
        treatment' means any special treatment under this title that is 
        provided for prior benefits, prior periods of time, or certain 
        individuals in connection with a change in the applicable law.
            ``(5) Consent.--In the case of a qualified trust described 
        in section 401(a) or 403(a) and an annuity contract described 
        in section 403(b) with respect to which transfers may be made 
        only with the consent of a participant or beneficiary pursuant 
        to the terms of such trust or contract or pursuant to 
        applicable law, such consent requirement shall apply without 
        regard to this subsection. Nothing in this subsection shall 
        affect the application of contract or plan terms otherwise 
        applicable in the case of a withdrawal from the contract or 
        plan.''.
            (2) Aggregation.--Paragraph (2) of section 414(t) is 
        amended by inserting ``414(aa),'' after ``274(j),''.
            (3) Technical amendment.--The heading of subsection (z) of 
        section 414 is amended by striking ``Plan'' and inserting 
        ``Church Plan''.
    (b) Amendment to the Employee Retirement Income Security Act of 
1974.--Section 4 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1003) is amended by adding at the end the following new 
subsection:
    ``(d) This title shall apply to any plan or contract described in 
section 414(bb) of the Internal Revenue Code of 1986 to the extent 
necessary to comply with the requirements of such section.''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to transfers or mergers in years beginning after the 
        Secretary of the Treasury prescribes rules under section 
        414(aa) of the Internal Revenue Code of 1986, as added by this 
        section.
            (2) Rules.--The Secretary of the Treasury shall issue rules 
        under section 414(aa) of the Internal Code of 1986, as so 
        added, within 1 year after the date of the enactment of this 
        Act.

SEC. 318. EXCEPTION FROM REQUIRED DISTRIBUTIONS WHERE AGGREGATE 
              RETIREMENT SAVINGS DO NOT EXCEED $100,000.

    (a) In General.--Section 401(a)(9), as amended by this Act, is 
further amended by adding at the end the following new subparagraph:
                    ``(K) Exception from required minimum distributions 
                during life of employee or beneficiary where assets do 
                not exceed $100,000.--
                            ``(i) In general.--If, as of a measurement 
                        date, the aggregate value of the entire 
                        interest of an employee under all applicable 
                        eligible retirement plans does not exceed 
                        $100,000, then, with respect to any applicable 
                        eligible retirement plan of the employee, 
                        during any succeeding calendar year beginning 
                        before the next measurement date--
                                    ``(I) the requirements of 
                                subparagraph (A) shall not apply to the 
                                employee, and
                                    ``(II) the requirements of 
                                subparagraph (B) shall not apply to the 
                                employee's designated beneficiary with 
                                respect to the designated beneficiary's 
                                interest in the interest of the 
                                deceased employee.
                            ``(ii) Applicable eligible retirement 
                        plan.--For purposes of this subparagraph, the 
                        term `applicable eligible retirement plan' 
                        means an eligible retirement plan (as defined 
                        in section 402(c)(8)(B)) and any other plan, 
                        contract, or arrangement to which the 
                        requirements of this paragraph apply, but does 
                        not include any defined benefit plan.
                            ``(iii) Measurement date.--
                                    ``(I) Initial measurement dates.--
                                The initial measurement date for an 
                                employee is the last day of the 
                                calendar year preceding the earlier 
                                of--
                                            ``(aa) the calendar year in 
                                        which the employee attains the 
                                        applicable age, or
                                            ``(bb) the calendar year in 
                                        which the employee dies.
                                    ``(II) Subsequent measurement 
                                dates.--If, in a calendar year, an 
                                employee to whom subparagraph (A) or 
                                (B) does not apply by reason of clause 
                                (i) receives contributions, rollovers, 
                                or transfers of amounts which were not 
                                previously taken into account in 
                                applying this subparagraph, then the 
                                last day of that calendar year shall be 
                                a new measurement date and a new 
                                determination shall be made as to 
                                whether clause (i) applies to such 
                                employee.
                                    ``(III) Special rule.--In the case 
                                of an employee who receives account 
                                statements at least annually with 
                                respect to a plan, the value of the 
                                employee's interest in such plan as 
                                shown on the last account statement 
                                provided to such employee for such 
                                calendar year may (at the election of 
                                the employee) be treated as the value 
                                of the employee's interest in such plan 
                                on the measurement date. If such last 
                                account statement does not include all 
                                amounts described in subclause (II) for 
                                such calendar year, the last day of the 
                                next calendar year shall be a new 
                                measurement date in accordance with 
                                subclause (II) and a new determination 
                                shall be made as to whether clause (i) 
                                applies to such employee.
                            ``(iv) Determination of value.--For 
                        purposes of this subparagraph, the value of an 
                        employee's interest in a plan is the account 
                        balance of such plan.
                            ``(v) Phase-out of exception.--In the case 
                        of an employee whose aggregate balance 
                        described in clause (i) as of a measurement 
                        date exceeds the dollar amount in effect under 
                        such clause by less than $10,000, the required 
                        distributions under this paragraph for calendar 
                        years beginning after such measurement date and 
                        before the next measurement date shall be equal 
                        to the amount which bears the same ratio to the 
                        required distributions otherwise determined 
                        under this paragraph as--
                                    ``(I) the amount by which such 
                                aggregate balance exceeds such dollar 
                                amount so in effect, bears to
                                    ``(II) $10,000.
                            ``(vi) Cost of living adjustments.--The 
                        Secretary shall adjust annually the $100,000 
                        amount specified in clause (i) for increases in 
                        the cost-of-living at the same time and in the 
                        same manner as adjustments under section 
                        415(d); except that the base period shall be 
                        the calendar quarter beginning July 1, 2018, 
                        and any increase which is not a multiple of 
                        $5,000 shall be rounded to the next lowest 
                        multiple of $5,000.
                            ``(vii) Plan reliance.--The plan 
                        administrator of an applicable eligible 
                        retirement plan may rely on a certification 
                        provided by an employee that such employee's 
                        interest in other applicable eligible 
                        retirement plans does not prevent such employee 
                        from being described in clause (i). Any such 
                        certification shall apply to all future years 
                        in the absence of a contrary certification from 
                        the employee, and shall apply to the current 
                        year if made not later than March 15 of such 
                        current year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to initial measurement dates occurring on or after December 31, 2018.

SEC. 319. HARDSHIP RULES FOR 403(B) PLANS.

    (a) In General.--Section 403(b) is amended by adding at the end the 
following new paragraph:
            ``(15) Special rules relating to hardship withdrawals.--For 
        purposes of paragraphs (7) and (11)--
                    ``(A) Amounts which may be withdrawn.--The 
                following amounts may be distributed upon hardship of 
                the employee:
                            ``(i) Contributions made pursuant to a 
                        salary reduction agreement (within the meaning 
                        of section 3121(a)(5)(D)).
                            ``(ii) Qualified nonelective contributions 
                        (as defined in section 401(m)(4)(C)).
                            ``(iii) Qualified matching contributions 
                        described in section 401(k)(3)(D)(ii)(I).
                            ``(iv) Earnings on any contributions 
                        described in clause (i), (ii), or (iii).
                    ``(B) No requirement to take available loan.--A 
                distribution shall not be treated as failing to be made 
                upon the hardship of an employee solely because the 
                employee does not take any available loan under the 
                plan.''.
    (b) Conforming Amendments.--
            (1) Section 403(b)(7)(A)(ii) is amended by striking ``in 
        the case of contributions made pursuant to a salary reduction 
        agreement (within the meaning of section 3121(a)(5)(D))'' and 
        inserting ``subject to the provisions of paragraph (15)''.
            (2) Paragraph (11) of section 403(b), as amended by this 
        Act, is further amended--
                    (A) by striking ``in'' in subparagraph (B) and 
                inserting ``subject to the provisions of paragraph 
                (15), in''; and
                    (B) by striking the last sentence.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

SEC. 320. IRA PRESERVATION.

    (a) Information Made Available.--The Secretary of the Treasury 
shall make available to the public the following information:
            (1) An overview of the laws and regulations related to 
        individual retirement plans (as defined in section 7701(a)(37) 
        of the Internal Revenue Code of 1986), including--
                    (A) limits on contributions;
                    (B) limits on deductions for contributions;
                    (C) rollovers;
                    (D) minimum required distributions;
                    (E) non-exempt prohibited transactions; and
                    (F) tax consequences for early distributions.
            (2) Examples of common errors by taxpayers with respect to 
        the laws and regulations described in paragraph (1) and 
        instructions on how to avoid such errors.
    (b) Reduction in Excise Tax on Excess Contributions.--Section 4973 
is amended by adding at the end the following new subsection:
    ``(i) Reduction of Tax in Certain Cases.--
            ``(1) Reduction.--In the case of a taxpayer who--
                    ``(A) corrects, during the correction window, an 
                excess contribution which was made to an individual 
                retirement plan and which resulted in imposition of a 
                tax under paragraph (1) or (3) of subsection (a), and
                    ``(B) submits a return, during the correction 
                window, reflecting such tax (as modified by this 
                subsection),
        the first and second sentences of subsection (a) shall be 
        applied by substituting `3 percent' for `6 percent' each place 
        it appears.
            ``(2) Correction window.--For purposes of this subsection, 
        the term `correction window' means the period beginning on the 
        date on which the tax under subsection (a) is imposed with 
        respect to an excess contribution, and ending on the earlier 
        of--
                    ``(A) the date on which the Secretary initiates an 
                audit, or otherwise demands payment, with respect to 
                the excess contribution, or
                    ``(B) the last day of the second taxable year that 
                begins after the end of the taxable year in which the 
                tax under subsection (a) is imposed.''.
    (c) Reduction in Excise Tax on Failures To Take Required Minimum 
Distributions.--Section 4974, as amended by this Act, is further 
amended by adding at the end the following new subsection:
    ``(e) Reduction of Tax in Certain Cases.--
            ``(1) Reduction.--In the case of a taxpayer who--
                    ``(A) corrects, during the correction window, a 
                shortfall of distributions from an individual 
                retirement plan which resulted in imposition of a tax 
                under subsection (a), and
                    ``(B) submits a return, during the correction 
                window, reflecting such tax (as modified by this 
                subsection),
        the first sentence of subsection (a) shall be applied by 
        substituting `10 percent' for `25 percent'.
            ``(2) Correction window.--For purposes of this subsection, 
        the term `correction window' means the period of time beginning 
        on the date on which the tax under subsection (a) is imposed 
        with respect to a shortfall of distributions from an individual 
        retirement plan, and ending on the earlier of--
                    ``(A) the date on which the Secretary initiates an 
                audit, or otherwise demands payment, with respect to 
                the shortfall of distributions, or
                    ``(B) the last day of the second taxable year that 
                begins after the end of the taxable year in which the 
                tax under subsection (a) is imposed.''.
    (d) Repeal of Tax Disqualification Penalty.--
            (1) In general.--Paragraph (2) of subsection (e) of section 
        408 is repealed.
            (2) Conforming amendments.--
                    (A) Section 408(e)(1) is amended by striking ``(2) 
                or''.
                    (B) Sections 220(e)(2), 223(e)(2), and 530(e) are 
                each amended by striking ``paragraphs (2) and (4) of 
                section 408(e)'' and inserting ``section 408(e)(4)''.
                    (C) Section 4975(c)(3) is amended by striking ``the 
                account ceases to be an individual retirement account 
                by reason of the application of section 408(e)(2)(A) or 
                if''.
    (e) Statute of Limitations.--Subsection (l) of section 6501 of the 
Internal Revenue Code of 1986 is amended--
            (1) in paragraph (1), by inserting ``(other than with 
        respect to an individual retirement plan)'' after ``section 
        4975''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Individual retirement plans.--For purposes of any tax 
        imposed by section 4973, 4974, or 4975 in connection with an 
        individual retirement plan, the return referred to in this 
        section shall be the income tax return filed by the person on 
        whom the tax under such section is imposed for the year in 
        which the act (or failure to act) giving rise to the liability 
        for such tax occurred. In the case of a person who is not 
        required to file an income tax return for such year--
                    ``(A) the return referred to in this section shall 
                be the income tax return that such person would have 
                been required to file but for the fact that such person 
                was not required to file such return, and
                    ``(B) the 3-year period referred to in subsection 
                (a) with respect to the return shall be deemed to begin 
                on the date by which the return would have been 
                required to be filed (excluding any extension 
                thereof).''.
    (f) Effective Date.--
            (1) In general.--Subject to paragraphs (2) and (3), this 
        section and the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Transition provisions.--
                    (A) In general.--The amendments made by this 
                section shall apply to any determination of or 
                affecting liability for taxes, interest, or penalties 
                which is made on or after the date of the enactment of 
                this Act, without regard to whether the conduct upon 
                which the determination is based occurred before such 
                date of enactment.
                    (B) Calculation of correction window in certain 
                cases.--In the case of an error that would have been 
                eligible for correction under section 4973(i) or 
                4974(e) of the Internal Revenue Code of 1986 if tax had 
                not been imposed under 4973(a) or 4974(a), as the case 
                may be, of such Code before the date of the enactment 
                of this Act, the correction window referred to in 
                sections 4973(i) and 4974(e) of such Code (as added by 
                this section) shall be the period beginning on the date 
                on which such tax was imposed and ending on the earlier 
                of--
                            (i) the date on which the Secretary of the 
                        Treasury initiates an audit or otherwise 
                        demands payment with respect to the conduct 
                        described in section 4973(a) or 4974(a), as the 
                        case may be, of such Code; or
                            (ii) the last day of the second taxable 
                        year that begins after the taxable year in 
                        which the date of the enactment of this Act 
                        occurs.
            (3) Implementation.--Subsection (a) shall be implemented as 
        soon as reasonably practicable after the enactment of this Act 
        but in no case later than the date that is 1 year after such 
        date of enactment.

SEC. 321. ELIMINATION OF ADDITIONAL TAX ON CERTAIN DISTRIBUTIONS.

    (a) In General.--Subparagraph (A) of section 72(t)(2), as amended 
by this Act, is further amended--
            (1) by striking ``or'' at the end of clause (vii);
            (2) by striking the period at the end of clause (viii) and 
        inserting ``, or''; and
            (3) by inserting after clause (viii) the following new 
        clause:
                            ``(ix) attributable to withdrawal of 
                        interest or other income earned on excess 
                        contributions (as defined in section 4973(b) 
                        (without regard to the second to last sentence 
                        thereof)) to an individual retirement plan.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to any determination of, or affecting, liability for taxes, 
interest, or penalties which is made on or after the date of the 
enactment of this Act, without regard to whether the act (or failure to 
act) upon which the determination is based occurred before such date of 
enactment. Notwithstanding the preceding sentence, nothing in the 
amendments made by this section shall be construed to create an 
inference with respect to the law in effect prior to the effective date 
of such amendments.

                 TITLE IV--DEFINED BENEFIT PLAN REFORMS

SEC. 401. CASH BALANCE.

    (a) In General.--Section 414, as amended by this Act, is further 
amended by adding at the end the following new subsection:
    ``(bb) Projected Interest Crediting Rate.--For purposes of this 
part, in the case of an applicable defined benefit plan which provides 
variable interest crediting rates, the interest crediting rate which is 
treated as in effect and as the projected interest crediting rate shall 
be a reasonable projection of such variable interest crediting rate, 
not to exceed 6 percent.''.
    (b) Amendment of Employee Retirement Income Security Act of 1974.--
Section 210 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1060) is amended by adding at the end the following new 
subsection:
    ``(g) Projected Interest Crediting Rate.--For purposes of this 
title, in the case of an applicable defined benefit plan (within the 
meaning of section 203(f)(3)) which provides variable interest 
crediting rates, the interest crediting rate which is treated as in 
effect and as the projected interest crediting rate shall be a 
reasonable projection of such variable interest crediting rate, not to 
exceed 6 percent.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to years beginning after the date of the enactment 
of this Act.

SEC. 402. ALIGNING USE OF LOOKBACK MONTHS TO DETERMINE INTEREST RATES.

    (a) In General.--The Secretary of the Treasury shall modify 
Treasury Regulation section 1.417(e)-1(d)(10)(ii) (or any successor 
provision) to provide that the same rule applicable to modifications of 
the time for determining the applicable interest rate shall apply to 
modifications of the time for determining any interest rate used by a 
plan to the extent that the use of such interest rate is permissible 
under section 417(e)(3) of the Internal Revenue Code of 1986. Such 
modified regulations shall require that after any such modification of 
such time under a plan pursuant to this section, no further 
modifications of such time are to be permitted for 5 years with respect 
to such plan without the consent of the Secretary of the Treasury.
    (b) Effective Date.--The modifications and amendments required 
under subsection (a) shall be deemed to have been made as of the date 
of the enactment of this Act, and as of such date all applicable laws 
shall be applied in all respects as though the actions which the 
Secretary of the Treasury is required to take under such subsection had 
been taken.

SEC. 403. CORRECTIONS OF MORTALITY TABLES.

    (a) In General.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of the Treasury shall amend the 
regulation relating to ``Mortality Tables for Determining Present Value 
Under Defined Benefit Pension Plans'' (82 Fed. Reg. 46388 (October 5, 
2017)). Under such amendment--
            (1) except as provided in paragraphs (2) and (3), the 
        mortality improvement rates for valuation dates occurring 
        during 2018 shall be based on the mortality improvement rates 
        in the Mortality Improvement Scale MP-2017 Report issued by the 
        Retirement Plans Experience Committee of the Society of 
        Actuaries;
            (2) for valuation dates occurring during or after 2018, 
        such mortality improvement rates shall not assume future 
        mortality improvements at any age which are greater than .78 
        percent, and
            (3) plan sponsors shall be permitted to elect for the 
        modifications under paragraphs (1) and (2) not to apply to a 
        plan for valuation dates occurring during 2018.
The Secretary shall by regulation modify the .78 percent figure in 
paragraph (2) as necessary to reflect material changes in the overall 
rate of improvement projected by the Social Security Administration.
    (b) Preservation of Current Law Option.--Notwithstanding the 
modifications made under subsection (a), with respect to a plan for 
which substitute mortality tables are not used pursuant to Treas. Reg. 
section 1.430(h)(3)-2 for a plan year beginning during 2018, mortality 
tables determined in accordance with Treas. Reg. section 1.430(h)(3)-1 
as in effect on December 31, 2017, may be used for purposes of applying 
the rules of section 430 of the Internal Revenue Code of 1986 for a 
valuation date occurring during 2018 if the plan sponsor--
            (1) concludes that the use of mortality tables determined 
        in accordance with Treas. Reg. section 1.430(h)(3)-1 (without 
        regard to any modification under this section) for the plan 
        year would be administratively impracticable or would result in 
        an adverse business impact that is greater than de minimis; and
            (2) informs the plan actuary of the intent to apply the 
        option under this subsection.
    (c) Effective Date.--The modifications and amendments required 
under subsections (a) and (b) shall be deemed to have been made as of 
the date of the enactment of this Act, and as of such date all 
applicable laws shall be applied in all respects as though the actions 
which the Secretary of the Treasury is required to take under such 
subsections had been taken.

SEC. 404. CEASE DOUBLE-INDEXING THE VARIABLE RATE PREMIUM.

    (a) In General.--Clause (ii) of section 4006(a)(3)(E) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(E)(ii)) is amended by striking ``the applicable dollar 
amount under paragraph (8)'' and inserting ``$38''.
    (b) Conforming Amendment.--Subsection (a) of section 4006 of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1306(a)) is 
amended by striking paragraph (8).
    (c) Technical Amendment.--Clause (i) of section 4006(a)(3)(E) of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
1306(a)(3)(E)) is amended by striking ``subparagraph (H)'' and 
inserting ``subparagraph (I)''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2018.

       TITLE V--REFORMING PLAN RULES TO HARMONIZE WITH IRA RULES

SEC. 501. ROTH PLAN DISTRIBUTION RULES.

    (a) In General.--Subsection (d) of section 402A is amended by 
adding at the end the following new paragraph:
            ``(5) Mandatory distribution rules not to apply before 
        death.--Notwithstanding sections 403(b)(10) and 457(d)(2), the 
        following provisions shall not apply to any designated Roth 
        account:
                    ``(A) Section 401(a)(9)(A).
                    ``(B) The incidental death benefit requirements of 
                section 401(a).''.
    (b) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendment made by this section shall apply to taxable years 
        beginning after December 31, 2018.
            (2) Special rule.--The amendment made by this section shall 
        not apply to distributions which are required with respect to 
        years beginning before January 1, 2019, but are permitted to be 
        paid on or after such date.

SEC. 502. DISTRIBUTIONS FOR CHARITABLE PURPOSES.

    (a) In General.--Section 402 is amended by adding at the end the 
following new subsection:
    ``(m) Distributions for Charitable Purposes.--
            ``(1) In general.--Gross income for any taxable year shall 
        not include so much of the aggregate amount of qualified 
        charitable distributions made with respect to a taxpayer during 
        such taxable year which does not exceed the applicable amount.
            ``(2) Qualified charitable distribution.--For purposes of 
        this subsection, the term `qualified charitable distribution' 
        means any distribution from an eligible retirement plan 
        described in clause (iii), (iv), (v), or (vi) of section 
        402(c)(8)(B)--
                    ``(A) which is made directly by the plan to an 
                organization described in section 170(b)(1)(A) (other 
                than any organization described in section 509(a)(3) or 
                any fund or account described in section 4966(d)(2)), 
                and
                    ``(B) which is made on or after the date that the 
                individual on whose behalf the distribution is made has 
                attained age 70\1/2\.
        A distribution shall be treated as a qualified charitable 
        distribution only to the extent that the distribution would be 
        includible in gross income without regard to paragraph (1).
            ``(3) Special rules.--
                    ``(A) In general.--Rules similar to the rules of 
                paragraphs (C) and (E) of section 408(d)(8) shall apply 
                for purposes of this subsection.
                    ``(B) Application of 72.--Rules similar to the 
                rules of section 408(d)(8)(D) shall apply for purposes 
                of this subsection, by taking into account all amounts 
                in the eligible retirement plan to which the taxpayer 
                has a nonforfeitable right in lieu of all amounts in 
                all individual retirement plans of the individual.
            ``(4) Applicable amount.--For purposes of this subsection, 
        the term `applicable amount' means the excess of--
                    ``(A) $100,000, over
                    ``(B) the total amount of any distributions not 
                includible in gross income of the taxpayer for the 
                taxable year by reason of sections 403(b)(16), 
                408(d)(8), and 457(e)(19).''.
    (b) SEPs and SIMPLEs.--Subparagraph (B) of section 408(d)(8) is 
amended by striking ``(other than a plan described in subsection (k) or 
(p))''.
    (c) 403(b) Plans.--Section 403(b), as amended by this Act, is 
further amended by adding at the end the following new paragraph:
            ``(16) Distributions for charitable purposes.--The rules of 
        section 402(m) shall apply to distributions under an annuity 
        contract described in this subsection.''.
    (d) 457(b) Plans.--Subsection (e) of section 457 is amended by 
adding at the end the following new paragraph:
            ``(19) Distributions for charitable purposes.--The rules of 
        section 402(m) shall apply to distributions under an eligible 
        deferred compensation plan established and maintained by an 
        employer described in subsection (e)(1)(A).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2018.

SEC. 503. SURVIVING SPOUSE ELECTION TO BE TREATED AS EMPLOYEE.

    (a) In General.--Clause (iv) of section 401(a)(9)(B) is amended--
            (1) by inserting ``or at the election of the surviving 
        spouse,'' after ``begin,'' in subclause (II); and
            (2) by adding at the end the following flush sentence:
                        ``An election described in subclause (II) shall 
                        be made at such time and in such manner as 
                        prescribed by the Secretary, shall include a 
                        timely notice to the plan administrator, and 
                        once made may not be revoked except with the 
                        consent of the Secretary.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to distributions with respect to employees who die after December 31, 
2018.

SEC. 504. ROLLOVERS FROM ROTH IRAS TO PLANS.

    (a) In General.--Subparagraph (B) of section 402A(c)(3) is amended 
by striking ``shall not'' and inserting ``or, in the case of a rollover 
from a Roth IRA, under section 408 shall not''.
    (b) Regulations.--The Secretary of the Treasury shall amend the 
regulations with respect to rollovers from Roth IRAs to permit such 
rollovers to be made to an applicable retirement plan (as defined in 
section 402A(e)(1) of the Internal Revenue Code of 1986) in accordance 
with the amendment made by subsection (a).
    (c) Effective Date.--
            (1) In general.--The amendment made by subsection (a) shall 
        apply to distributions made after December 31, 2018.
            (2) Effective date.--The modifications and amendments 
        required under subsection (b) shall be deemed to have been made 
        as of January 1, 2019, and as of such date all applicable laws 
        shall be applied in all respects as though the actions which 
        the Secretary of the Treasury is required to take under such 
        subsection had been taken.

                  TITLE VI--ADMINISTRATIVE PROVISIONS

SEC. 601. PROVISIONS RELATING TO PLAN AMENDMENTS.

    (a) In General.--If this section applies to any retirement plan or 
contract amendment--
            (1) such retirement plan or contract shall be treated as 
        being operated in accordance with the terms of the plan during 
        the period described in subsection (b)(2)(A); and
            (2) except as provided by the Secretary of the Treasury, 
        such retirement plan shall not fail to meet the requirements of 
        section 411(d)(6) of the Internal Revenue Code of 1986 and 
        section 204(g) of the Employee Retirement Income Security Act 
        of 1974 by reason of such amendment.
    (b) Amendments to Which Section Applies.--
            (1) In general.--This section shall apply to any amendment 
        to any retirement plan or annuity contract which is made--
                    (A) pursuant to any amendment made by this Act or 
                pursuant to any regulation issued by the Secretary of 
                the Treasury or the Secretary of Labor under this Act; 
                and
                    (B) on or before the last day of the first plan 
                year beginning on or after January 1, 2021.
        In the case of a governmental plan (as defined in section 
        414(d) of the Internal Revenue Code of 1986), this paragraph 
        shall be applied by substituting ``2023'' for ``2021''.
            (2) Conditions.--This section shall not apply to any 
        amendment unless--
                    (A) during the period--
                            (i) beginning on the date the legislative 
                        or regulatory amendment described in paragraph 
                        (1)(A) takes effect (or in the case of a plan 
                        or contract amendment not required by such 
                        legislative or regulatory amendment, the 
                        effective date specified by the plan); and
                            (ii) ending on the date described in 
                        paragraph (1)(B) (as modified by the second 
                        sentence of paragraph (1)) (or, if earlier, the 
                        date the plan or contract amendment is 
                        adopted),
                the plan or contract is operated as if such plan or 
                contract amendment were in effect; and
                    (B) such plan or contract amendment applies 
                retroactively for such period.
                                 <all>