[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1994 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 1994

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2019

     Mr. Neal (for himself, Mr. Brady, Mr. Kind, and Mr. Kelly of 
Pennsylvania) introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
Education and Labor, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to encourage retirement 
                    savings, 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 ``Setting Every 
Community Up for Retirement Enhancement Act of 2019''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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

Sec. 101. Increase in 10 percent cap for automatic enrollment safe 
                            harbor after 1st plan year.
Sec. 102. Rules relating to election of safe harbor 401(k) status.
Sec. 103. Increase in credit limitation for small employer pension plan 
                            startup costs.
Sec. 104. Small employer automatic enrollment credit.
Sec. 105. Certain taxable non-tuition fellowship and stipend payments 
                            treated as compensation for IRA purposes.
Sec. 106. Repeal of maximum age for traditional IRA contributions.
Sec. 107. Qualified employer plans prohibited from making loans through 
                            credit cards and other similar 
                            arrangements.
Sec. 108. Portability of lifetime income options.
Sec. 109. Treatment of custodial accounts on termination of section 
                            403(b) plans.
Sec. 110. Clarification of retirement income account rules relating to 
                            church-controlled organizations.
Sec. 111. 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. 112. Penalty-free withdrawals from retirement plans for 
                            individuals in case of birth of child or 
                            adoption.
Sec. 113. Increase in age for required beginning date for mandatory 
                            distributions.
Sec. 114. Special rules for minimum funding standards for community 
                            newspaper plans.
Sec. 115. Treating excluded difficulty of care payments as compensation 
                            for determining retirement contribution 
                            limitations.
                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

Sec. 201. Plan adopted by filing due date for year may be treated as in 
                            effect as of close of year.
Sec. 202. Combined annual report for group of plans.
Sec. 203. Disclosure regarding lifetime income.
Sec. 204. Fiduciary safe harbor for selection of lifetime income 
                            provider.
Sec. 205. Modification of nondiscrimination rules to protect older, 
                            longer service participants.
                       TITLE III--OTHER BENEFITS

Sec. 301. Benefits provided to volunteer firefighters and emergency 
                            medical responders.
Sec. 302. Expansion of section 529 plans.
                      TITLE IV--REVENUE PROVISIONS

Sec. 401. Modifications of required distribution rules for designated 
                            beneficiaries.
Sec. 402. Increase in penalty for failure to file.
Sec. 403. Increased penalties for failure to file retirement plan 
                            returns.
Sec. 404. Increase information sharing to administer excise taxes.

          TITLE I--EXPANDING AND PRESERVING RETIREMENT SAVINGS

SEC. 101. INCREASE IN 10 PERCENT CAP FOR AUTOMATIC ENROLLMENT SAFE 
              HARBOR AFTER 1ST PLAN YEAR.

    (a) In General.--Section 401(k)(13)(C)(iii) of the Internal Revenue 
Code of 1986 is amended by striking ``does not exceed 10 percent'' and 
inserting ``does not exceed 15 percent (10 percent during the period 
described in subclause (I))''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2019.

SEC. 102. RULES RELATING TO ELECTION OF SAFE HARBOR 401(K) STATUS.

    (a) Limitation of Annual Safe Harbor Notice to Matching 
Contribution Plans.--
            (1) In general.--Subparagraph (A) of section 401(k)(12) of 
        the Internal Revenue Code of 1986 is amended by striking ``if 
        such arrangement'' and all that follows and inserting ``if such 
        arrangement--
                            ``(i) meets the contribution requirements 
                        of subparagraph (B) and the notice requirements 
                        of subparagraph (D), or
                            ``(ii) meets the contribution requirements 
                        of subparagraph (C).''.
            (2) Automatic contribution arrangements.--Subparagraph (B) 
        of section 401(k)(13) of such Code is amended by striking 
        ``means'' and all that follows and inserting ``means a cash or 
        deferred arrangement--
                    ``(A) which is described in subparagraph (D)(i)(I) 
                and meets the applicable requirements of subparagraphs 
                (C) through (E), or
                    ``(B) which is described in subparagraph (D)(i)(II) 
                and meets the applicable requirements of subparagraphs 
                (C) and (D).''.
    (b) Nonelective Contributions.--Section 401(k)(12) of the Internal 
Revenue Code of 1986 is amended by redesignating subparagraph (F) as 
subparagraph (G), and by inserting after subparagraph (E) the following 
new subparagraph:
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (C) shall apply to 
                        the arrangement for the plan year, but only if 
                        the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (B) or paragraph 
                        (13)(D)(i)(I) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph (C) 
                        which the employer is required to make under 
                        the arrangement for the plan year with respect 
                        to any employee is an amount equal to at least 
                        4 percent of the employee's compensation.''.
    (c) Automatic Contribution Arrangements.--Section 401(k)(13) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following:
                    ``(F) Timing of plan amendment for employer making 
                nonelective contributions.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a plan may be amended after the 
                        beginning of a plan year to provide that the 
                        requirements of subparagraph (D)(i)(II) shall 
                        apply to the arrangement for the plan year, but 
                        only if the amendment is adopted--
                                    ``(I) at any time before the 30th 
                                day before the close of the plan year, 
                                or
                                    ``(II) at any time before the last 
                                day under paragraph (8)(A) for 
                                distributing excess contributions for 
                                the plan year.
                            ``(ii) Exception where plan provided for 
                        matching contributions.--Clause (i) shall not 
                        apply to any plan year if the plan provided at 
                        any time during the plan year that the 
                        requirements of subparagraph (D)(i)(I) or 
                        paragraph (12)(B) applied to the plan year.
                            ``(iii) 4-percent contribution 
                        requirement.--Clause (i)(II) shall not apply to 
                        an arrangement unless the amount of the 
                        contributions described in subparagraph 
                        (D)(i)(II) which the employer is required to 
                        make under the arrangement for the plan year 
                        with respect to any employee is an amount equal 
                        to at least 4 percent of the employee's 
                        compensation.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2019.

SEC. 103. INCREASE IN CREDIT LIMITATION FOR SMALL EMPLOYER PENSION PLAN 
              STARTUP COSTS.

    (a) In General.--Paragraph (1) of section 45E(b) of the Internal 
Revenue Code of 1986 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 
                        414(q)) and who is eligible to participate in 
                        the eligible employer plan maintained by the 
                        eligible employer, or
                            ``(ii) $5,000, and''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.

SEC. 104. SMALL EMPLOYER AUTOMATIC ENROLLMENT CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45T. AUTO-ENROLLMENT OPTION FOR RETIREMENT SAVINGS OPTIONS 
              PROVIDED BY SMALL EMPLOYERS.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer, the retirement auto-enrollment credit determined 
under this section for any taxable year is an amount equal to--
            ``(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 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 arrangement 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).''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of the Internal Revenue Code of 1986 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) in the case of an eligible employer (as defined in 
        section 45T(c)), the retirement auto-enrollment credit 
        determined under section 45T(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 45S the 
following new item:

``Sec. 45T. Auto-enrollment option for retirement savings options 
                            provided by small employers.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 105. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND PAYMENTS 
              TREATED AS COMPENSATION FOR IRA PURPOSES.

    (a) In General.--Paragraph (1) of section 219(f) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following: 
``The term `compensation' shall include any amount which is included in 
the individual's gross income and paid to the individual to aid the 
individual in the pursuit of graduate or postdoctoral study.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.

SEC. 106. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA CONTRIBUTIONS.

    (a) In General.--Paragraph (1) of section 219(d) of the Internal 
Revenue Code of 1986 is repealed.
    (b) Conforming Amendment.--Subsection (c) of section 408A of the 
Internal Revenue Code of 1986 is amended by striking paragraph (4) and 
by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), 
and (6), respectively.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made for taxable years beginning after December 
31, 2019.

SEC. 107. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING LOANS THROUGH 
              CREDIT CARDS AND OTHER SIMILAR ARRANGEMENTS.

    (a) In General.--Paragraph (2) of section 72(p) of the Internal 
Revenue Code of 1986 is amended by redesignating subparagraph (D) as 
subparagraph (E) and by inserting after subparagraph (C) the following 
new subparagraph:
                    ``(D) Prohibition of loans through credit cards and 
                other similar arrangements.--Subparagraph (A) shall not 
                apply to any loan which is made through the use of any 
                credit card or any other similar arrangement.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to loans made after the date of the enactment of this Act.

SEC. 108. PORTABILITY OF LIFETIME INCOME OPTIONS.

    (a) In General.--Subsection (a) of section 401 of the Internal 
Revenue Code of 1986 is amended by inserting after paragraph (37) the 
following new paragraph:
            ``(38) Portability of lifetime income.--
                    ``(A) In general.--Except as may be otherwise 
                provided by regulations, a trust forming part of a 
                defined contribution plan shall not be treated as 
                failing to constitute a qualified trust under this 
                section solely by reason of allowing--
                            ``(i) qualified distributions of a lifetime 
                        income investment, or
                            ``(ii) distributions of a lifetime income 
                        investment in the form of a qualified plan 
                        distribution annuity contract,
                on or after the date that is 90 days prior to the date 
                on which such lifetime income investment is no longer 
                authorized to be held as an investment option under the 
                plan.
                    ``(B) Definitions.--For purposes of this 
                subsection--
                            ``(i) the term `qualified distribution' 
                        means a direct trustee-to-trustee transfer 
                        described in paragraph (31)(A) to an eligible 
                        retirement plan (as defined in section 
                        402(c)(8)(B)),
                            ``(ii) the term `lifetime income 
                        investment' means an investment option which is 
                        designed to provide an employee with election 
                        rights--
                                    ``(I) which are not uniformly 
                                available with respect to other 
                                investment options under the plan, and
                                    ``(II) which are to a lifetime 
                                income feature available through a 
                                contract or other arrangement offered 
                                under the plan (or under another 
                                eligible retirement plan (as so 
                                defined), if paid by means of a direct 
                                trustee-to-trustee transfer described 
                                in paragraph (31)(A) to such other 
                                eligible retirement plan),
                            ``(iii) the term `lifetime income feature' 
                        means--
                                    ``(I) a feature which guarantees a 
                                minimum level of income annually (or 
                                more frequently) for at least the 
                                remainder of the life of the employee 
                                or the joint lives of the employee and 
                                the employee's designated beneficiary, 
                                or
                                    ``(II) an annuity payable on behalf 
                                of the employee under which payments 
                                are made in substantially equal 
                                periodic payments (not less frequently 
                                than annually) over the life of the 
                                employee or the joint lives of the 
                                employee and the employee's designated 
                                beneficiary, and
                            ``(iv) the term `qualified plan 
                        distribution annuity contract' means an annuity 
                        contract purchased for a participant and 
                        distributed to the participant by a plan or 
                        contract described in subparagraph (B) of 
                        section 402(c)(8) (without regard to clauses 
                        (i) and (ii) thereof).''.
    (b) Cash or Deferred Arrangement.--
            (1) In general.--Clause (i) of section 401(k)(2)(B) of the 
        Internal Revenue Code of 1986 is amended by striking ``or'' at 
        the end of subclause (IV), by striking ``and'' at the end of 
        subclause (V) and inserting ``or'', and by adding at the end 
        the following new subclause:
                                    ``(VI) except as may be otherwise 
                                provided by regulations, with respect 
                                to amounts invested in a lifetime 
                                income investment (as defined in 
                                subsection (a)(38)(B)(ii)), the date 
                                that is 90 days prior to the date that 
                                such lifetime income investment may no 
                                longer be held as an investment option 
                                under the arrangement, and''.
            (2) Distribution requirement.--Subparagraph (B) of section 
        401(k)(2) of such Code, as amended by paragraph (1), is amended 
        by striking ``and'' at the end of clause (i), by striking the 
        semicolon at the end of clause (ii) and inserting ``, and'', 
        and by adding at the end the following new clause:
                            ``(iii) except as may be otherwise provided 
                        by regulations, in the case of amounts 
                        described in clause (i)(VI), will be 
                        distributed only in the form of a qualified 
                        distribution (as defined in subsection 
                        (a)(38)(B)(i)) or a qualified plan distribution 
                        annuity contract (as defined in subsection 
                        (a)(38)(B)(iv)),''.
    (c) Section 403(b) Plans.--
            (1) Annuity contracts.--Paragraph (11) of section 403(b) of 
        the Internal Revenue Code of 1986 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) except as may be otherwise provided by 
                regulations, with respect to amounts invested in a 
                lifetime income investment (as defined in section 
                401(a)(38)(B)(ii))--
                            ``(i) on or after the date that is 90 days 
                        prior to the date that such lifetime income 
                        investment may no longer be held as an 
                        investment option under the contract, and
                            ``(ii) in the form of a qualified 
                        distribution (as defined in section 
                        401(a)(38)(B)(i)) or a qualified plan 
                        distribution annuity contract (as defined in 
                        section 401(a)(38)(B)(iv)).''.
            (2) Custodial accounts.--Subparagraph (A) of section 
        403(b)(7) of such Code is amended by striking ``if--'' and all 
        that follows and inserting ``if the amounts are to be invested 
        in regulated investment company stock to be held in that 
        custodial account, and under the custodial account--
                            ``(i) no such amounts may be paid or made 
                        available to any distributee (unless such 
                        amount is a distribution to which section 
                        72(t)(2)(G) applies) before--
                                    ``(I) the employee dies,
                                    ``(II) the employee attains age 
                                59\1/2\,
                                    ``(III) the employee has a 
                                severance from employment,
                                    ``(IV) the employee becomes 
                                disabled (within the meaning of section 
                                72(m)(7)),
                                    ``(V) in the case of contributions 
                                made pursuant to a salary reduction 
                                agreement (within the meaning of 
                                section 3121(a)(5)(D)), the employee 
                                encounters financial hardship, or
                                    ``(VI) except as may be otherwise 
                                provided by regulations, with respect 
                                to amounts invested in a lifetime 
                                income investment (as defined in 
                                section 401(a)(38)(B)(ii)), the date 
                                that is 90 days prior to the date that 
                                such lifetime income investment may no 
                                longer be held as an investment option 
                                under the contract, and
                            ``(ii) in the case of amounts described in 
                        clause (i)(VI), such amounts will be 
                        distributed only in the form of a qualified 
                        distribution (as defined in section 
                        401(a)(38)(B)(i)) or a qualified plan 
                        distribution annuity contract (as defined in 
                        section 401(a)(38)(B)(iv)).''.
    (d) Eligible Deferred Compensation Plans.--
            (1) In general.--Subparagraph (A) of section 457(d)(1) of 
        the Internal Revenue Code of 1986 is amended by striking ``or'' 
        at the end of clause (ii), by inserting ``or'' at the end of 
        clause (iii), and by adding after clause (iii) the following:
                            ``(iv) except as may be otherwise provided 
                        by regulations, in the case of a plan 
                        maintained by an employer described in 
                        subsection (e)(1)(A), with respect to amounts 
                        invested in a lifetime income investment (as 
                        defined in section 401(a)(38)(B)(ii)), the date 
                        that is 90 days prior to the date that such 
                        lifetime income investment may no longer be 
                        held as an investment option under the plan,''.
            (2) Distribution requirement.--Paragraph (1) of section 
        457(d) of such Code is amended by striking ``and'' at the end 
        of subparagraph (B), by striking the period at the end of 
        subparagraph (C) and inserting ``, and'', and by inserting 
        after subparagraph (C) the following new subparagraph:
                    ``(D) except as may be otherwise provided by 
                regulations, in the case of amounts described in 
                subparagraph (A)(iv), such amounts will be distributed 
                only in the form of a qualified distribution (as 
                defined in section 401(a)(38)(B)(i)) or a qualified 
                plan distribution annuity contract (as defined in 
                section 401(a)(38)(B)(iv)).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to plan years beginning after December 31, 2019.

SEC. 109. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF SECTION 
              403(B) PLANS.

    Not later than six months after the date of enactment of this Act, 
the Secretary of the Treasury shall issue guidance to provide that, if 
an employer terminates the plan under which amounts are contributed to 
a custodial account under subparagraph (A) of section 403(b)(7), the 
plan administrator or custodian may distribute an individual custodial 
account in kind to a participant or beneficiary of the plan and the 
distributed custodial account shall be maintained by the custodian on a 
tax-deferred basis as a section 403(b)(7) custodial account, similar to 
the treatment of fully-paid individual annuity contracts under Revenue 
Ruling 2011-7, until amounts are actually paid to the participant or 
beneficiary. The guidance shall provide further (i) that the section 
403(b)(7) status of the distributed custodial account is generally 
maintained if the custodial account thereafter adheres to the 
requirements of section 403(b) that are in effect at the time of the 
distribution of the account and (ii) that a custodial account would not 
be considered distributed to the participant or beneficiary if the 
employer has any material retained rights under the account (but the 
employer would not be treated as retaining material rights simply 
because the custodial account was originally opened under a group 
contract). Such guidance shall be retroactively effective for taxable 
years beginning after December 31, 2008.

SEC. 110. CLARIFICATION OF RETIREMENT INCOME ACCOUNT RULES RELATING TO 
              CHURCH-CONTROLLED ORGANIZATIONS.

    (a) In General.--Subparagraph (B) of section 403(b)(9) of the 
Internal Revenue Code of 1986 is amended by inserting ``(including an 
employee described in section 414(e)(3)(B))'' after ``employee 
described in paragraph (1)''.
    (b) Effective Date.--The amendment made by this section shall apply 
to years beginning before, on, or after the date of the enactment of 
this Act.

SEC. 111. 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.--Section 401(k)(2)(D) of the Internal 
        Revenue Code of 1986 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 (15), the first period of 3 
                        consecutive 12-month periods during each of 
                        which the employee has at least 500 hours of 
                        service.''.
            (2) Special rules.--Section 401(k) of such Code is amended 
        by adding at the end the following new paragraph:
            ``(15) 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), 
                                paragraphs (3), (12), and (13), 
                                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).
                    ``(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, 2020, 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, 2021, shall not be taken into account.

SEC. 112. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
              INDIVIDUALS IN CASE OF BIRTH OF CHILD OR ADOPTION.

    (a) In General.--Section 72(t)(2) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(H) Distributions from retirement plans in case 
                of birth of child or adoption.--
                            ``(i) In general.--Any qualified birth or 
                        adoption distribution.
                            ``(ii) Limitation.--The aggregate amount 
                        which may be treated as qualified birth or 
                        adoption distributions by any individual with 
                        respect to any birth or adoption shall not 
                        exceed $5,000.
                            ``(iii) Qualified birth or adoption 
                        distribution.--For purposes of this 
                        subparagraph--
                                    ``(I) In general.--The term 
                                `qualified birth or adoption 
                                distribution' means any distribution 
                                from an applicable eligible retirement 
                                plan to an individual if made during 
                                the 1-year period beginning on the date 
                                on which a child of the individual is 
                                born or on which the legal adoption by 
                                the individual of an eligible adoptee 
                                is finalized.
                                    ``(II) Eligible adoptee.--The term 
                                `eligible adoptee' means any individual 
                                (other than a child of the taxpayer's 
                                spouse) who has not attained age 18 or 
                                is physically or mentally incapable of 
                                self-support.
                            ``(iv) Treatment of plan distributions.--
                                    ``(I) In general.--If a 
                                distribution to an individual would 
                                (without regard to clause (ii)) be a 
                                qualified birth or adoption 
                                distribution, a plan shall not be 
                                treated as failing to meet any 
                                requirement of this title merely 
                                because the plan treats the 
                                distribution as a qualified birth or 
                                adoption distribution, unless the 
                                aggregate amount of such distributions 
                                from all plans maintained by the 
                                employer (and any member of any 
                                controlled group which includes the 
                                employer) to such individual exceeds 
                                $5,000.
                                    ``(II) Controlled group.--For 
                                purposes of subclause (I), the term 
                                `controlled group' means any group 
                                treated as a single employer under 
                                subsection (b), (c), (m), or (o) of 
                                section 414.
                            ``(v) Amount distributed may be repaid.--
                                    ``(I) In general.--Any individual 
                                who receives a qualified birth or 
                                adoption distribution may make one or 
                                more contributions in an aggregate 
                                amount not to exceed the amount of such 
                                distribution to an applicable eligible 
                                retirement plan of which such 
                                individual is a beneficiary and to 
                                which a rollover contribution of such 
                                distribution could be made under 
                                section 402(c), 403(a)(4), 403(b)(8), 
                                408(d)(3), or 457(e)(16), as the case 
                                may be.
                                    ``(II) Limitation on contributions 
                                to applicable eligible retirement plans 
                                other than iras.--The aggregate amount 
                                of contributions made by an individual 
                                under subclause (I) to any applicable 
                                eligible retirement plan which is not 
                                an individual retirement plan shall not 
                                exceed the aggregate amount of 
                                qualified birth or adoption 
                                distributions which are made from such 
                                plan to such individual. Subclause (I) 
                                shall not apply to contributions to any 
                                applicable eligible retirement plan 
                                which is not an individual retirement 
                                plan unless the individual is eligible 
                                to make contributions (other than those 
                                described in subclause (I)) to such 
                                applicable eligible retirement plan.
                                    ``(III) Treatment of repayments of 
                                distributions from applicable eligible 
                                retirement plans other than iras.--If a 
                                contribution is made under subclause 
                                (I) with respect to a qualified birth 
                                or adoption distribution from an 
                                applicable eligible retirement plan 
                                other than an individual retirement 
                                plan, then the taxpayer shall, to the 
                                extent of the amount of the 
                                contribution, be treated as having 
                                received such distribution in an 
                                eligible rollover distribution (as 
                                defined in section 402(c)(4)) and as 
                                having transferred the amount to the 
                                applicable eligible retirement plan in 
                                a direct trustee to trustee transfer 
                                within 60 days of the distribution.
                                    ``(IV) Treatment of repayments for 
                                distributions from iras.--If a 
                                contribution is made under subclause 
                                (I) with respect to a qualified birth 
                                or adoption distribution from an 
                                individual retirement plan, then, to 
                                the extent of the amount of the 
                                contribution, such distribution shall 
                                be treated as a distribution described 
                                in section 408(d)(3) and as having been 
                                transferred to the applicable eligible 
                                retirement plan in a direct trustee to 
                                trustee transfer within 60 days of the 
                                distribution.
                            ``(vi) Definition and special rules.--For 
                        purposes of this subparagraph--
                                    ``(I) Applicable eligible 
                                retirement plan.--The term `applicable 
                                eligible retirement plan' means an 
                                eligible retirement plan (as defined in 
                                section 402(c)(8)(B)) other than a 
                                defined benefit plan.
                                    ``(II) Exemption of distributions 
                                from trustee to trustee transfer and 
                                withholding rules.--For purposes of 
                                sections 401(a)(31), 402(f), and 3405, 
                                a qualified birth or adoption 
                                distribution shall not be treated as an 
                                eligible rollover distribution.
                                    ``(III) Taxpayer must include 
                                tin.--A distribution shall not be 
                                treated as a qualified birth or 
                                adoption distribution with respect to 
                                any child or eligible adoptee unless 
                                the taxpayer includes the name, age, 
                                and TIN of such child or eligible 
                                adoptee on the taxpayer's return of tax 
                                for the taxable year.
                                    ``(IV) Distributions treated as 
                                meeting plan distribution 
                                requirements.--Any qualified birth or 
                                adoption distribution shall be treated 
                                as meeting the requirements of sections 
                                401(k)(2)(B)(i), 403(b)(7)(A)(ii), 
                                403(b)(11), and 457(d)(1)(A).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to distributions made after December 31, 2019.

SEC. 113. INCREASE IN AGE FOR REQUIRED BEGINNING DATE FOR MANDATORY 
              DISTRIBUTIONS.

    (a) In General.--Section 401(a)(9)(C)(i)(I) of the Internal Revenue 
Code of 1986 is amended by striking ``age 70\1/2\'' and inserting ``age 
72''.
    (b) Spouse Beneficiaries; Special Rule for Owners.--Subparagraphs 
(B)(iv)(I) and (C)(ii)(I) of section 401(a)(9) of such Code are each 
amended by striking ``age 70\1/2\'' and inserting ``age 72''.
    (c) Actuarial Adjustment.--Section 401(a)(9)(C)(iii) of such Code 
is amended by striking ``age 70\1/2\'' each place it appears and 
inserting ``age 72''.
    (d) Conforming Amendments.--
            (1) The last sentence of section 408(b) of such Code is 
        amended by striking ``age 70\1/2\'' and inserting ``age 72''.
            (2) Section 457(d)(1)(A)(i) of such Code is amended by 
        striking ``age 70\1/2\'' and inserting ``age 72''.
    (e) Effective Date.--The amendments made by this section shall 
apply to distributions required to be made after December 31, 2019, 
with respect to individuals who attain age 70\1/2\ after such date.

SEC. 114. SPECIAL RULES FOR MINIMUM FUNDING STANDARDS FOR COMMUNITY 
              NEWSPAPER PLANS.

    (a) Amendment to Internal Revenue Code of 1986.--Section 430 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new subsection:
    ``(m) Special Rules for Community Newspaper Plans.--
            ``(1) In general.--The plan sponsor of a community 
        newspaper plan under which no participant has had the 
        participant's accrued benefit increased (whether because of 
        service or compensation) after December 31, 2017, may elect to 
        have the alternative standards described in paragraph (3) apply 
        to such plan, and any plan sponsored by any member of the same 
        controlled group.
            ``(2) Election.--An election under paragraph (1) shall be 
        made at such time and in such manner as prescribed by the 
        Secretary. Such election, once made with respect to a plan 
        year, shall apply to all subsequent plan years unless revoked 
        with the consent of the Secretary.
            ``(3) Alternative minimum funding standards.--The 
        alternative standards described in this paragraph are the 
        following:
                    ``(A) Interest rates.--
                            ``(i) In general.--Notwithstanding 
                        subsection (h)(2)(C) and except as provided in 
                        clause (ii), the first, second, and third 
                        segment rates in effect for any month for 
                        purposes of this section shall be 8 percent.
                            ``(ii) New benefit accruals.--
                        Notwithstanding subsection (h)(2), for purposes 
                        of determining the funding target and normal 
                        cost of a plan for any plan year, the present 
                        value of any benefits accrued or earned under 
                        the plan for a plan year with respect to which 
                        an election under paragraph (1) is in effect 
                        shall be determined on the basis of the U.S. 
                        Treasury obligation yield curve for the day 
                        that is the valuation date of such plan for 
                        such plan year.
                            ``(iii) U.S. treasury obligation yield 
                        curve.--For purposes of this subsection, the 
                        term `U.S. Treasury obligation yield curve' 
                        means, with respect to any day, a yield curve 
                        which shall be prescribed by the Secretary for 
                        such day on interest-bearing obligations of the 
                        United States.
                    ``(B) Shortfall amortization base.--
                            ``(i) Previous shortfall amortization 
                        bases.--The shortfall amortization bases 
                        determined under subsection (c)(3) for all plan 
                        years preceding the first plan year to which 
                        the election under paragraph (1) applies (and 
                        all shortfall amortization installments 
                        determined with respect to such bases) shall be 
                        reduced to zero under rules similar to the 
                        rules of subsection (c)(6).
                            ``(ii) New shortfall amortization base.--
                        Notwithstanding subsection (c)(3), the 
                        shortfall amortization base for the first plan 
                        year to which the election under paragraph (1) 
                        applies shall be the funding shortfall of such 
                        plan for such plan year (determined using the 
                        interest rates as modified under subparagraph 
                        (A)).
                    ``(C) Determination of shortfall amortization 
                installments.--
                            ``(i) 30-year period.--Subparagraphs (A) 
                        and (B) of subsection (c)(2) shall be applied 
                        by substituting `30-plan-year' for `7-plan-
                        year' each place it appears.
                            ``(ii) No special election.--The election 
                        under subparagraph (D) of subsection (c)(2) 
                        shall not apply to any plan year to which the 
                        election under paragraph (1) applies.
                    ``(D) Exemption from at-risk treatment.--Subsection 
                (i) shall not apply.
            ``(4) Community newspaper plan.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `community newspaper 
                plan' means a plan to which this section applies 
                maintained by an employer which, as of December 31, 
                2017--
                            ``(i) publishes and distributes daily, 
                        either electronically or in printed form, 1 or 
                        more community newspapers in a single State,
                            ``(ii) is not a company the stock of which 
                        is publicly traded (on a stock exchange or in 
                        an over-the-counter market), and is not 
                        controlled, directly or indirectly, by such a 
                        company,
                            ``(iii) is controlled, directly or 
                        indirectly--
                                    ``(I) by 1 or more persons residing 
                                primarily in the State in which the 
                                community newspaper is published,
                                    ``(II) for not less than 30 years 
                                by individuals who are members of the 
                                same family,
                                    ``(III) by a trust created or 
                                organized in the State in which the 
                                community newspaper is published, the 
                                sole trustees of which are persons 
                                described in subclause (I) or (II),
                                    ``(IV) by an entity which is 
                                described in section 501(c)(3) and 
                                exempt from taxation under section 
                                501(a), which is organized and operated 
                                in the State in which the community 
                                newspaper is published, and the primary 
                                purpose of which is to benefit 
                                communities in such State, or
                                    ``(V) by a combination of persons 
                                described in subclause (I), (III), or 
                                (IV), and
                            ``(iv) does not control, directly or 
                        indirectly, any newspaper in any other State.
                    ``(B) Community newspaper.--The term `community 
                newspaper' means a newspaper which primarily serves a 
                metropolitan statistical area, as determined by the 
                Office of Management and Budget, with a population of 
                not less than 100,000.
                    ``(C) Control.--A person shall be treated as 
                controlled by another person if such other person 
                possesses, directly or indirectly, the power to direct 
                or cause the direction and management of such person 
                (including the power to elect a majority of the members 
                of the board of directors of such person) through the 
                ownership of voting securities.
            ``(5) Controlled group.--For purposes of this subsection, 
        the term `controlled group' means all persons treated as a 
        single employer under subsection (b), (c), (m), or (o) of 
        section 414 as of the date of the enactment of this 
        subsection.''.
    (b) Amendment to Employee Retirement Income Security Act of 1974.--
Section 303 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1083) is amended by adding at the end the following new 
subsection:
    ``(m) Special Rules for Community Newspaper Plans.--
            ``(1) In general.--The plan sponsor of a community 
        newspaper plan under which no participant has had the 
        participant's accrued benefit increased (whether because of 
        service or compensation) after December 31, 2017, may elect to 
        have the alternative standards described in paragraph (3) apply 
        to such plan, and any plan sponsored by any member of the same 
        controlled group.
            ``(2) Election.--An election under paragraph (1) shall be 
        made at such time and in such manner as prescribed by the 
        Secretary of the Treasury. Such election, once made with 
        respect to a plan year, shall apply to all subsequent plan 
        years unless revoked with the consent of the Secretary of the 
        Treasury.
            ``(3) Alternative minimum funding standards.--The 
        alternative standards described in this paragraph are the 
        following:
                    ``(A) Interest rates.--
                            ``(i) In general.--Notwithstanding 
                        subsection (h)(2)(C) and except as provided in 
                        clause (ii), the first, second, and third 
                        segment rates in effect for any month for 
                        purposes of this section shall be 8 percent.
                            ``(ii) New benefit accruals.--
                        Notwithstanding subsection (h)(2), for purposes 
                        of determining the funding target and normal 
                        cost of a plan for any plan year, the present 
                        value of any benefits accrued or earned under 
                        the plan for a plan year with respect to which 
                        an election under paragraph (1) is in effect 
                        shall be determined on the basis of the U.S. 
                        Treasury obligation yield curve for the day 
                        that is the valuation date of such plan for 
                        such plan year.
                            ``(iii) U.S. treasury obligation yield 
                        curve.--For purposes of this subsection, the 
                        term `U.S. Treasury obligation yield curve' 
                        means, with respect to any day, a yield curve 
                        which shall be prescribed by the Secretary of 
                        the Treasury for such day on interest-bearing 
                        obligations of the United States.
                    ``(B) Shortfall amortization base.--
                            ``(i) Previous shortfall amortization 
                        bases.--The shortfall amortization bases 
                        determined under subsection (c)(3) for all plan 
                        years preceding the first plan year to which 
                        the election under paragraph (1) applies (and 
                        all shortfall amortization installments 
                        determined with respect to such bases) shall be 
                        reduced to zero under rules similar to the 
                        rules of subsection (c)(6).
                            ``(ii) New shortfall amortization base.--
                        Notwithstanding subsection (c)(3), the 
                        shortfall amortization base for the first plan 
                        year to which the election under paragraph (1) 
                        applies shall be the funding shortfall of such 
                        plan for such plan year (determined using the 
                        interest rates as modified under subparagraph 
                        (A)).
                    ``(C) Determination of shortfall amortization 
                installments.--
                            ``(i) 30-year period.--Subparagraphs (A) 
                        and (B) of subsection (c)(2) shall be applied 
                        by substituting `30-plan-year' for `7-plan-
                        year' each place it appears.
                            ``(ii) No special election.--The election 
                        under subparagraph (D) of subsection (c)(2) 
                        shall not apply to any plan year to which the 
                        election under paragraph (1) applies.
                    ``(D) Exemption from at-risk treatment.--Subsection 
                (i) shall not apply.
            ``(4) Community newspaper plan.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `community newspaper 
                plan' means a plan to which this section applies 
                maintained by an employer which, as of December 31, 
                2017--
                            ``(i) publishes and distributes daily, 
                        either electronically or in printed form--
                                    ``(I) a community newspaper, or
                                    ``(II) 1 or more community 
                                newspapers in the same State,
                            ``(ii) is not a company the stock of which 
                        is publicly traded (on a stock exchange or in 
                        an over-the-counter market), and is not 
                        controlled, directly or indirectly, by such a 
                        company,
                            ``(iii) is controlled, directly or 
                        indirectly--
                                    ``(I) by 1 or more persons residing 
                                primarily in the State in which the 
                                community newspaper is published,
                                    ``(II) for not less than 30 years 
                                by individuals who are members of the 
                                same family,
                                    ``(III) by a trust created or 
                                organized in the State in which the 
                                community newspaper is published, the 
                                sole trustees of which are persons 
                                described in subclause (I) or (II),
                                    ``(IV) by an entity which is 
                                described in section 501(c)(3) of the 
                                Internal Revenue Code of 1986 and 
                                exempt from taxation under section 
                                501(a) of such Code, which is organized 
                                and operated in the State in which the 
                                community newspaper is published, and 
                                the primary purpose of which is to 
                                benefit communities in such State, or
                                    ``(V) by a combination of persons 
                                described in subclause (I), (III), or 
                                (IV), and
                            ``(iv) does not control, directly or 
                        indirectly, any newspaper in any other State.
                    ``(B) Community newspaper.--The term `community 
                newspaper' means a newspaper which primarily serves a 
                metropolitan statistical area, as determined by the 
                Office of Management and Budget, with a population of 
                not less than 100,000.
                    ``(C) Control.--A person shall be treated as 
                controlled by another person if such other person 
                possesses, directly or indirectly, the power to direct 
                or cause the direction and management of such person 
                (including the power to elect a majority of the members 
                of the board of directors of such person) through the 
                ownership of voting securities.
            ``(5) Controlled group.--For purposes of this subsection, 
        the term `controlled group' means all persons treated as a 
        single employer under subsection (b), (c), (m), or (o) of 
        section 414 of the Internal Revenue Code of 1986 as of the date 
        of the enactment of this subsection.
            ``(6) Effect on premium rate calculation.--Notwithstanding 
        any other provision of law or any regulation issued by the 
        Pension Benefit Guaranty Corporation, in the case of a 
        community newspaper plan which elects the application of the 
        alternative standards described in paragraph (3), the 
        additional premium under section 4006(a)(3)(E) shall be 
        determined as if such election had not been made.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to plan years ending after December 31, 2017.

SEC. 115. TREATING EXCLUDED DIFFICULTY OF CARE PAYMENTS AS COMPENSATION 
              FOR DETERMINING RETIREMENT CONTRIBUTION LIMITATIONS.

    (a) Individual Retirement Accounts.--
            (1) In general.--Section 408(o) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(5) Special rule for difficulty of care payments excluded 
        from gross income.--In the case of an individual who for a 
        taxable year excludes from gross income under section 131 a 
        qualified foster care payment which is a difficulty of care 
        payment, if--
                    ``(A) the deductible amount in effect for the 
                taxable year under subsection (b), exceeds
                    ``(B) the amount of compensation includible in the 
                individual's gross income for the taxable year,
        the individual may elect to increase the nondeductible limit 
        under paragraph (2) for the taxable year by an amount equal to 
        the lesser of such excess or the amount so excluded.''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to contributions after the date of the enactment of 
        this Act.
    (b) Defined Contribution Plans.--
            (1) In general.--Section 415(c) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(8) Special rule for difficulty of care payments excluded 
        from gross income.--
                    ``(A) In general.--For purposes of paragraph 
                (1)(B), in the case of an individual who for a taxable 
                year excludes from gross income under section 131 a 
                qualified foster care payment which is a difficulty of 
                care payment, the participant's compensation, or earned 
                income, as the case may be, shall be increased by the 
                amount so excluded.
                    ``(B) Contributions allocable to difficulty of care 
                payments treated as after-tax.--Any contribution by the 
                participant which is allowable due to such increase--
                            ``(i) shall be treated for purposes of this 
                        title as investment in the contract, and
                            ``(ii) shall not cause a plan (and any 
                        arrangement which is part of such plan) to be 
                        treated as failing to meet any requirements of 
                        this chapter solely by reason of allowing any 
                        such contributions.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to plan years beginning after December 31, 2015.

                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

SEC. 201. PLAN ADOPTED BY FILING DUE DATE FOR YEAR MAY BE TREATED AS IN 
              EFFECT AS OF CLOSE OF YEAR.

    (a) In General.--Subsection (b) of section 401 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``Retroactive Changes in Plan.--A stock 
        bonus'' and inserting ``Plan Amendments.--
            ``(1) Certain retroactive changes in plan.--A stock 
        bonus''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Adoption of plan.--If an employer adopts a stock 
        bonus, pension, profit-sharing, or annuity plan after the close 
        of a taxable year but before the time prescribed by law for 
        filing the return of the employer for the taxable year 
        (including extensions thereof), the employer may elect to treat 
        the plan as having been adopted as of the last day of the 
        taxable year.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to plans adopted for taxable years beginning after December 31, 
2019.

SEC. 202. COMBINED ANNUAL REPORT FOR GROUP OF PLANS.

    (a) In General.--The Secretary of the Treasury and the Secretary of 
Labor shall, in cooperation, modify the returns required under section 
6058 of the Internal Revenue Code of 1986 and the reports required by 
section 104 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1024) so that all members of a group of plans described in 
subsection (c) may file a single aggregated annual return or report 
satisfying the requirements of both such sections.
    (b) Administrative Requirements.--In developing the consolidated 
return or report under subsection (a), the Secretary of the Treasury 
and the Secretary of Labor may require such return or report to include 
any information regarding each plan in the group as such Secretaries 
determine is necessary or appropriate for the enforcement and 
administration of the Internal Revenue Code of 1986 and the Employee 
Retirement Income Security Act of 1974.
    (c) Plans Described.--A group of plans is described in this 
subsection if all plans in the group--
            (1) are individual account plans or defined contribution 
        plans (as defined in section 3(34) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002(34)) or in section 
        414(i) of the Internal Revenue Code of 1986);
            (2) have--
                    (A) the same trustee (as described in section 
                403(a) of such Act (29 U.S.C. 1103(a)));
                    (B) the same one or more named fiduciaries (as 
                described in section 402(a) of such Act (29 U.S.C. 
                1102(a)));
                    (C) the same administrator (as defined in section 
                3(16)(A) of such Act (29 U.S.C. 1002(16)(A))) and plan 
                administrator (as defined in section 414(g) of the 
                Internal Revenue Code of 1986); and
                    (D) plan years beginning on the same date; and
            (3) provide the same investments or investment options to 
        participants and beneficiaries.
A plan not subject to title I of the Employee Retirement Income 
Security Act of 1974 shall be treated as meeting the requirements of 
paragraph (2) as part of a group of plans if the same person that 
performs each of the functions described in such paragraph, as 
applicable, for all other plans in such group performs each of such 
functions for such plan.
    (d) Clarification Relating to Electronic Filing of Returns for 
Deferred Compensation Plans.--
            (1) In general.--Section 6011(e) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(6) Application of numerical limitation to returns 
        relating to deferred compensation plans.--For purposes of 
        applying the numerical limitation under paragraph (2)(A) to any 
        return required under section 6058, information regarding each 
        plan for which information is provided on such return shall be 
        treated as a separate return.''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall apply to returns required to be filed with respect to 
        plan years beginning after December 31, 2019.
    (e) Effective Date.--The modification required by subsection (a) 
shall be implemented not later than January 1, 2022, and shall apply to 
returns and reports for plan years beginning after December 31, 2021.

SEC. 203. DISCLOSURE REGARDING LIFETIME INCOME.

    (a) In General.--Subparagraph (B) of section 105(a)(2) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)(2)) 
is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii), by striking ``diversification.'' and 
        inserting ``diversification, and''; and
            (3) by inserting at the end the following:
                            ``(iii) the lifetime income disclosure 
                        described in subparagraph (D)(i).
                In the case of pension benefit statements described in 
                clause (i) of paragraph (1)(A), a lifetime income 
                disclosure under clause (iii) of this subparagraph 
                shall be required to be included in only one pension 
                benefit statement during any one 12-month period.''.
    (b) Lifetime Income.--Paragraph (2) of section 105(a) of the 
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1025(a)) is 
amended by adding at the end the following new subparagraph:
                    ``(D) Lifetime income disclosure.--
                            ``(i) In general.--
                                    ``(I) Disclosure.--A lifetime 
                                income disclosure shall set forth the 
                                lifetime income stream equivalent of 
                                the total benefits accrued with respect 
                                to the participant or beneficiary.
                                    ``(II) Lifetime income stream 
                                equivalent of the total benefits 
                                accrued.--For purposes of this 
                                subparagraph, the term `lifetime income 
                                stream equivalent of the total benefits 
                                accrued' means the amount of monthly 
                                payments the participant or beneficiary 
                                would receive if the total accrued 
                                benefits of such participant or 
                                beneficiary were used to provide 
                                lifetime income streams described in 
                                subclause (III), based on assumptions 
                                specified in rules prescribed by the 
                                Secretary.
                                    ``(III) Lifetime income streams.--
                                The lifetime income streams described 
                                in this subclause are a qualified joint 
                                and survivor annuity (as defined in 
                                section 205(d)), based on assumptions 
                                specified in rules prescribed by the 
                                Secretary, including the assumption 
                                that the participant or beneficiary has 
                                a spouse of equal age, and a single 
                                life annuity. Such lifetime income 
                                streams may have a term certain or 
                                other features to the extent permitted 
                                under rules prescribed by the 
                                Secretary.
                            ``(ii) Model disclosure.--Not later than 1 
                        year after the date of the enactment of the 
                        Setting Every Community Up for Retirement 
                        Enhancement Act of 2019, the Secretary shall 
                        issue a model lifetime income disclosure, 
                        written in a manner so as to be understood by 
                        the average plan participant, which--
                                    ``(I) explains that the lifetime 
                                income stream equivalent is only 
                                provided as an illustration;
                                    ``(II) explains that the actual 
                                payments under the lifetime income 
                                stream described in clause (i)(III) 
                                which may be purchased with the total 
                                benefits accrued will depend on 
                                numerous factors and may vary 
                                substantially from the lifetime income 
                                stream equivalent in the disclosures;
                                    ``(III) explains the assumptions 
                                upon which the lifetime income stream 
                                equivalent was determined; and
                                    ``(IV) provides such other similar 
                                explanations as the Secretary considers 
                                appropriate.
                            ``(iii) Assumptions and rules.--Not later 
                        than 1 year after the date of the enactment of 
                        the Setting Every Community Up for Retirement 
                        Enhancement Act of 2019, the Secretary shall--
                                    ``(I) prescribe assumptions which 
                                administrators of individual account 
                                plans may use in converting total 
                                accrued benefits into lifetime income 
                                stream equivalents for purposes of this 
                                subparagraph; and
                                    ``(II) issue interim final rules 
                                under clause (i).
                        In prescribing assumptions under subclause (I), 
                        the Secretary may prescribe a single set of 
                        specific assumptions (in which case the 
                        Secretary may issue tables or factors which 
                        facilitate such conversions), or ranges of 
                        permissible assumptions. To the extent that an 
                        accrued benefit is or may be invested in a 
                        lifetime income stream described in clause 
                        (i)(III), the assumptions prescribed under 
                        subclause (I) shall, to the extent appropriate, 
                        permit administrators of individual account 
                        plans to use the amounts payable under such 
                        lifetime income stream as a lifetime income 
                        stream equivalent.
                            ``(iv) Limitation on liability.--No plan 
                        fiduciary, plan sponsor, or other person shall 
                        have any liability under this title solely by 
                        reason of the provision of lifetime income 
                        stream equivalents which are derived in 
                        accordance with the assumptions and rules 
                        described in clause (iii) and which include the 
                        explanations contained in the model lifetime 
                        income disclosure described in clause (ii). 
                        This clause shall apply without regard to 
                        whether the provision of such lifetime income 
                        stream equivalent is required by subparagraph 
                        (B)(iii).
                            ``(v) Effective date.--The requirement in 
                        subparagraph (B)(iii) shall apply to pension 
                        benefit statements furnished more than 12 
                        months after the latest of the issuance by the 
                        Secretary of--
                                    ``(I) interim final rules under 
                                clause (i);
                                    ``(II) the model disclosure under 
                                clause (ii); or
                                    ``(III) the assumptions under 
                                clause (iii).''.

SEC. 204. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME INCOME 
              PROVIDER.

    Section 404 of the Employee Retirement Income Security Act of 1974 
(29 U.S.C. 1104) is amended by adding at the end the following:
    ``(e) Safe Harbor for Annuity Selection.--
            ``(1) In general.--With respect to the selection of an 
        insurer for a guaranteed retirement income contract, the 
        requirements of subsection (a)(1)(B) will be deemed to be 
        satisfied if a fiduciary--
                    ``(A) engages in an objective, thorough, and 
                analytical search for the purpose of identifying 
                insurers from which to purchase such contracts;
                    ``(B) with respect to each insurer identified under 
                subparagraph (A)--
                            ``(i) considers the financial capability of 
                        such insurer to satisfy its obligations under 
                        the guaranteed retirement income contract; and
                            ``(ii) considers the cost (including fees 
                        and commissions) of the guaranteed retirement 
                        income contract offered by the insurer in 
                        relation to the benefits and product features 
                        of the contract and administrative services to 
                        be provided under such contract; and
                    ``(C) on the basis of such consideration, concludes 
                that--
                            ``(i) at the time of the selection, the 
                        insurer is financially capable of satisfying 
                        its obligations under the guaranteed retirement 
                        income contract; and
                            ``(ii) the relative cost of the selected 
                        guaranteed retirement income contract as 
                        described in subparagraph (B)(ii) is 
                        reasonable.
            ``(2) Financial capability of the insurer.--A fiduciary 
        will be deemed to satisfy the requirements of paragraphs 
        (1)(B)(i) and (1)(C)(i) if--
                    ``(A) the fiduciary obtains written representations 
                from the insurer that--
                            ``(i) the insurer is licensed to offer 
                        guaranteed retirement income contracts;
                            ``(ii) the insurer, at the time of 
                        selection and for each of the immediately 
                        preceding 7 plan years--
                                    ``(I) operates under a certificate 
                                of authority from the insurance 
                                commissioner of its domiciliary State 
                                which has not been revoked or 
                                suspended;
                                    ``(II) has filed audited financial 
                                statements in accordance with the laws 
                                of its domiciliary State under 
                                applicable statutory accounting 
                                principles;
                                    ``(III) maintains (and has 
                                maintained) reserves which satisfies 
                                all the statutory requirements of all 
                                States where the insurer does business; 
                                and
                                    ``(IV) is not operating under an 
                                order of supervision, rehabilitation, 
                                or liquidation;
                            ``(iii) the insurer undergoes, at least 
                        every 5 years, a financial examination (within 
                        the meaning of the law of its domiciliary 
                        State) by the insurance commissioner of the 
                        domiciliary State (or representative, designee, 
                        or other party approved by such commissioner); 
                        and
                            ``(iv) the insurer will notify the 
                        fiduciary of any change in circumstances 
                        occurring after the provision of the 
                        representations in clauses (i), (ii), and (iii) 
                        which would preclude the insurer from making 
                        such representations at the time of issuance of 
                        the guaranteed retirement income contract; and
                    ``(B) after receiving such representations and as 
                of the time of selection, the fiduciary has not 
                received any notice described in subparagraph (A)(iv) 
                and is in possession of no other information which 
                would cause the fiduciary to question the 
                representations provided.
            ``(3) No requirement to select lowest cost.--Nothing in 
        this subsection shall be construed to require a fiduciary to 
        select the lowest cost contract. A fiduciary may consider the 
        value of a contract, including features and benefits of the 
        contract and attributes of the insurer (including, without 
        limitation, the insurer's financial strength) in conjunction 
        with the cost of the contract.
            ``(4) Time of selection.--
                    ``(A) In general.--For purposes of this subsection, 
                the time of selection is--
                            ``(i) the time that the insurer and the 
                        contract are selected for distribution of 
                        benefits to a specific participant or 
                        beneficiary; or
                            ``(ii) if the fiduciary periodically 
                        reviews the continuing appropriateness of the 
                        conclusion described in paragraph (1)(C) with 
                        respect to a selected insurer, taking into 
                        account the considerations described in such 
                        paragraph, the time that the insurer and the 
                        contract are selected to provide benefits at 
                        future dates to participants or beneficiaries 
                        under the plan.
                Nothing in the preceding sentence shall be construed to 
                require the fiduciary to review the appropriateness of 
                a selection after the purchase of a contract for a 
                participant or beneficiary.
                    ``(B) Periodic review.--A fiduciary will be deemed 
                to have conducted the periodic review described in 
                subparagraph (A)(ii) if the fiduciary obtains the 
                written representations described in clauses (i), (ii), 
                and (iii) of paragraph (2)(A) from the insurer on an 
                annual basis, unless the fiduciary receives any notice 
                described in paragraph (2)(A)(iv) or otherwise becomes 
                aware of facts that would cause the fiduciary to 
                question such representations.
            ``(5) Limited liability.--A fiduciary which satisfies the 
        requirements of this subsection shall not be liable following 
        the distribution of any benefit, or the investment by or on 
        behalf of a participant or beneficiary pursuant to the selected 
        guaranteed retirement income contract, for any losses that may 
        result to the participant or beneficiary due to an insurer's 
        inability to satisfy its financial obligations under the terms 
        of such contract.
            ``(6) Definitions.--For purposes of this subsection--
                    ``(A) Insurer.--The term `insurer' means an 
                insurance company, insurance service, or insurance 
                organization, including affiliates of such companies.
                    ``(B) Guaranteed retirement income contract.--The 
                term `guaranteed retirement income contract' means an 
                annuity contract for a fixed term or a contract (or 
                provision or feature thereof) which provides guaranteed 
                benefits annually (or more frequently) for at least the 
                remainder of the life of the participant or the joint 
                lives of the participant and the participant's 
                designated beneficiary as part of an individual account 
                plan.''.

SEC. 205. MODIFICATION OF NONDISCRIMINATION RULES TO PROTECT OLDER, 
              LONGER SERVICE PARTICIPANTS.

    (a) In General.--Section 401 of the Internal Revenue Code of 1986 
is amended--
            (1) by redesignating subsection (o) as subsection (p); and
            (2) by inserting after subsection (n) the following new 
        subsection:
    ``(o) Special Rules for Applying Nondiscrimination Rules To Protect 
Older, Longer Service and Grandfathered Participants.--
            ``(1) Testing of defined benefit plans with closed classes 
        of participants.--
                    ``(A) Benefits, rights, or features provided to 
                closed classes.--A defined benefit plan which provides 
                benefits, rights, or features to a closed class of 
                participants shall not fail to satisfy the requirements 
                of subsection (a)(4) by reason of the composition of 
                such closed class or the benefits, rights, or features 
                provided to such closed class, if--
                            ``(i) for the plan year as of which the 
                        class closes and the 2 succeeding plan years, 
                        such benefits, rights, and features satisfy the 
                        requirements of subsection (a)(4) (without 
                        regard to this subparagraph but taking into 
                        account the rules of subparagraph (I)),
                            ``(ii) after the date as of which the class 
                        was closed, any plan amendment which modifies 
                        the closed class or the benefits, rights, and 
                        features provided to such closed class does not 
                        discriminate significantly in favor of highly 
                        compensated employees, and
                            ``(iii) the class was closed before April 
                        5, 2017, or the plan is described in 
                        subparagraph (C).
                    ``(B) Aggregate testing with defined contribution 
                plans permitted on a benefits basis.--
                            ``(i) In general.--For purposes of 
                        determining compliance with subsection (a)(4) 
                        and section 410(b), a defined benefit plan 
                        described in clause (iii) may be aggregated and 
                        tested on a benefits basis with 1 or more 
                        defined contribution plans, including with the 
                        portion of 1 or more defined contribution plans 
                        which--
                                    ``(I) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)),
                                    ``(II) provides annuity contracts 
                                described in section 403(b) which are 
                                purchased with matching contributions 
                                or nonelective contributions, or
                                    ``(III) consists of an employee 
                                stock ownership plan (within the 
                                meaning of section 4975(e)(7)) or a tax 
                                credit employee stock ownership plan 
                                (within the meaning of section 409(a)).
                            ``(ii) Special rules for matching 
                        contributions.--For purposes of clause (i), if 
                        a defined benefit plan is aggregated with a 
                        portion of a defined contribution plan 
                        providing matching contributions--
                                    ``(I) such defined benefit plan 
                                must also be aggregated with any 
                                portion of such defined contribution 
                                plan which provides elective deferrals 
                                described in subparagraph (A) or (C) of 
                                section 402(g)(3), and
                                    ``(II) such matching contributions 
                                shall be treated in the same manner as 
                                nonelective contributions, including 
                                for purposes of applying the rules of 
                                subsection (l).
                            ``(iii) Plans described.--A defined benefit 
                        plan is described in this clause if--
                                    ``(I) the plan provides benefits to 
                                a closed class of participants,
                                    ``(II) for the plan year as of 
                                which the class closes and the 2 
                                succeeding plan years, the plan 
                                satisfies the requirements of section 
                                410(b) and subsection (a)(4) (without 
                                regard to this subparagraph but taking 
                                into account the rules of subparagraph 
                                (I)),
                                    ``(III) after the date as of which 
                                the class was closed, any plan 
                                amendment which modifies the closed 
                                class or the benefits provided to such 
                                closed class does not discriminate 
                                significantly in favor of highly 
                                compensated employees, and
                                    ``(IV) the class was closed before 
                                April 5, 2017, or the plan is described 
                                in subparagraph (C).
                    ``(C) Plans described.--A plan is described in this 
                subparagraph if, taking into account any predecessor 
                plan--
                            ``(i) such plan has been in effect for at 
                        least 5 years as of the date the class is 
                        closed, and
                            ``(ii) during the 5-year period preceding 
                        the date the class is closed, there has not 
                        been a substantial increase in the coverage or 
                        value of the benefits, rights, or features 
                        described in subparagraph (A) or in the 
                        coverage or benefits under the plan described 
                        in subparagraph (B)(iii) (whichever is 
                        applicable).
                    ``(D) Determination of substantial increase for 
                benefits, rights, and features.--In applying 
                subparagraph (C)(ii) for purposes of subparagraph 
                (A)(iii), a plan shall be treated as having had a 
                substantial increase in coverage or value of the 
                benefits, rights, or features described in subparagraph 
                (A) during the applicable 5-year period only if, during 
                such period--
                            ``(i) the number of participants covered by 
                        such benefits, rights, or features on the date 
                        such period ends is more than 50 percent 
                        greater than the number of such participants on 
                        the first day of the plan year in which such 
                        period began, or
                            ``(ii) such benefits, rights, and features 
                        have been modified by 1 or more plan amendments 
                        in such a way that, as of the date the class is 
                        closed, the value of such benefits, rights, and 
                        features to the closed class as a whole is 
                        substantially greater than the value as of the 
                        first day of such 5-year period, solely as a 
                        result of such amendments.
                    ``(E) Determination of substantial increase for 
                aggregate testing on benefits basis.--In applying 
                subparagraph (C)(ii) for purposes of subparagraph 
                (B)(iii)(IV), a plan shall be treated as having had a 
                substantial increase in coverage or benefits during the 
                applicable 5-year period only if, during such period--
                            ``(i) the number of participants 
                        benefitting under the plan on the date such 
                        period ends is more than 50 percent greater 
                        than the number of such participants on the 
                        first day of the plan year in which such period 
                        began, or
                            ``(ii) the average benefit provided to such 
                        participants on the date such period ends is 
                        more than 50 percent greater than the average 
                        benefit provided on the first day of the plan 
                        year in which such period began.
                    ``(F) Certain employees disregarded.--For purposes 
                of subparagraphs (D) and (E), any increase in coverage 
                or value or in coverage or benefits, whichever is 
                applicable, which is attributable to such coverage and 
                value or coverage and benefits provided to employees--
                            ``(i) who became participants as a result 
                        of a merger, acquisition, or similar event 
                        which occurred during the 7-year period 
                        preceding the date the class is closed, or
                            ``(ii) who became participants by reason of 
                        a merger of the plan with another plan which 
                        had been in effect for at least 5 years as of 
                        the date of the merger,
                shall be disregarded, except that clause (ii) shall 
                apply for purposes of subparagraph (D) only if, under 
                the merger, the benefits, rights, or features under 1 
                plan are conformed to the benefits, rights, or features 
                of the other plan prospectively.
                    ``(G) Rules relating to average benefit.--For 
                purposes of subparagraph (E)--
                            ``(i) the average benefit provided to 
                        participants under the plan will be treated as 
                        having remained the same between the 2 dates 
                        described in subparagraph (E)(ii) if the 
                        benefit formula applicable to such participants 
                        has not changed between such dates, and
                            ``(ii) if the benefit formula applicable to 
                        1 or more participants under the plan has 
                        changed between such 2 dates, then the average 
                        benefit under the plan shall be considered to 
                        have increased by more than 50 percent only 
                        if--
                                    ``(I) the total amount determined 
                                under section 430(b)(1)(A)(i) for all 
                                participants benefitting under the plan 
                                for the plan year in which the 5-year 
                                period described in subparagraph (E) 
                                ends, exceeds
                                    ``(II) the total amount determined 
                                under section 430(b)(1)(A)(i) for all 
                                such participants for such plan year, 
                                by using the benefit formula in effect 
                                for each such participant for the first 
                                plan year in such 5-year period,
                        by more than 50 percent. In the case of a CSEC 
                        plan (as defined in section 414(y)), the normal 
                        cost of the plan (as determined under section 
                        433(j)(1)(B)) shall be used in lieu of the 
                        amount determined under section 
                        430(b)(1)(A)(i).
                    ``(H) Treatment as single plan.--For purposes of 
                subparagraphs (E) and (G), a plan described in section 
                413(c) shall be treated as a single plan rather than as 
                separate plans maintained by each employer in the plan.
                    ``(I) Special rules.--For purposes of subparagraphs 
                (A)(i) and (B)(iii)(II), the following rules shall 
                apply:
                            ``(i) In applying section 410(b)(6)(C), the 
                        closing of the class of participants shall not 
                        be treated as a significant change in coverage 
                        under section 410(b)(6)(C)(i)(II).
                            ``(ii) Two or more plans shall not fail to 
                        be eligible to be aggregated and treated as a 
                        single plan solely by reason of having 
                        different plan years.
                            ``(iii) Changes in the employee population 
                        shall be disregarded to the extent attributable 
                        to individuals who become employees or cease to 
                        be employees, after the date the class is 
                        closed, by reason of a merger, acquisition, 
                        divestiture, or similar event.
                            ``(iv) Aggregation and all other testing 
                        methodologies otherwise applicable under 
                        subsection (a)(4) and section 410(b) may be 
                        taken into account.
                The rule of clause (ii) shall also apply for purposes 
                of determining whether plans to which subparagraph 
                (B)(i) applies may be aggregated and treated as 1 plan 
                for purposes of determining whether such plans meet the 
                requirements of subsection (a)(4) and section 410(b).
                    ``(J) Spun-off plans.--For purposes of this 
                paragraph, if a portion of a defined benefit plan 
                described in subparagraph (A) or (B)(iii) is spun off 
                to another employer and the spun-off plan continues to 
                satisfy the requirements of--
                            ``(i) subparagraph (A)(i) or (B)(iii)(II), 
                        whichever is applicable, if the original plan 
                        was still within the 3-year period described in 
                        such subparagraph at the time of the spin off, 
                        and
                            ``(ii) subparagraph (A)(ii) or 
                        (B)(iii)(III), whichever is applicable,
                the treatment under subparagraph (A) or (B) of the 
                spun-off plan shall continue with respect to such other 
                employer.
            ``(2) Testing of defined contribution plans.--
                    ``(A) Testing on a benefits basis.--A defined 
                contribution plan shall be permitted to be tested on a 
                benefits basis if--
                            ``(i) such defined contribution plan 
                        provides make-whole contributions to a closed 
                        class of participants whose accruals under a 
                        defined benefit plan have been reduced or 
                        eliminated,
                            ``(ii) for the plan year of the defined 
                        contribution plan as of which the class 
                        eligible to receive such make-whole 
                        contributions closes and the 2 succeeding plan 
                        years, such closed class of participants 
                        satisfies the requirements of section 
                        410(b)(2)(A)(i) (determined by applying the 
                        rules of paragraph (1)(I)),
                            ``(iii) after the date as of which the 
                        class was closed, any plan amendment to the 
                        defined contribution plan which modifies the 
                        closed class or the allocations, benefits, 
                        rights, and features provided to such closed 
                        class does not discriminate significantly in 
                        favor of highly compensated employees, and
                            ``(iv) the class was closed before April 5, 
                        2017, or the defined benefit plan under clause 
                        (i) is described in paragraph (1)(C) (as 
                        applied for purposes of paragraph 
                        (1)(B)(iii)(IV)).
                    ``(B) Aggregation with plans including matching 
                contributions.--
                            ``(i) In general.--With respect to 1 or 
                        more defined contribution plans described in 
                        subparagraph (A), for purposes of determining 
                        compliance with subsection (a)(4) and section 
                        410(b), the portion of such plans which 
                        provides make-whole contributions or other 
                        nonelective contributions may be aggregated and 
                        tested on a benefits basis with the portion of 
                        1 or more other defined contribution plans 
                        which--
                                    ``(I) provides matching 
                                contributions (as defined in subsection 
                                (m)(4)(A)),
                                    ``(II) provides annuity contracts 
                                described in section 403(b) which are 
                                purchased with matching contributions 
                                or nonelective contributions, or
                                    ``(III) consists of an employee 
                                stock ownership plan (within the 
                                meaning of section 4975(e)(7)) or a tax 
                                credit employee stock ownership plan 
                                (within the meaning of section 409(a)).
                            ``(ii) Special rules for matching 
                        contributions.--Rules similar to the rules of 
                        paragraph (1)(B)(ii) shall apply for purposes 
                        of clause (i).
                    ``(C) Special rules for testing defined 
                contribution plan features providing matching 
                contributions to certain older, longer service 
                participants.--In the case of a defined contribution 
                plan which provides benefits, rights, or features to a 
                closed class of participants whose accruals under a 
                defined benefit plan have been reduced or eliminated, 
                the plan shall not fail to satisfy the requirements of 
                subsection (a)(4) solely by reason of the composition 
                of the closed class or the benefits, rights, or 
                features provided to such closed class if the defined 
                contribution plan and defined benefit plan otherwise 
                meet the requirements of subparagraph (A) but for the 
                fact that the make-whole contributions under the 
                defined contribution plan are made in whole or in part 
                through matching contributions.
                    ``(D) Spun-off plans.--For purposes of this 
                paragraph, if a portion of a defined contribution plan 
                described in subparagraph (A) or (C) is spun off to 
                another employer, the treatment under subparagraph (A) 
                or (C) of the spun-off plan shall continue with respect 
                to the other employer if such plan continues to comply 
                with the requirements of clauses (ii) (if the original 
                plan was still within the 3-year period described in 
                such clause at the time of the spin off) and (iii) of 
                subparagraph (A), as determined for purposes of 
                subparagraph (A) or (C), whichever is applicable.
            ``(3) Definitions and special rule.--For purposes of this 
        subsection--
                    ``(A) Make-whole contributions.--Except as 
                otherwise provided in paragraph (2)(C), the term `make-
                whole contributions' means nonelective allocations for 
                each employee in the class which are reasonably 
                calculated, in a consistent manner, to replace some or 
                all of the retirement benefits which the employee would 
                have received under the defined benefit plan and any 
                other plan or qualified cash or deferred arrangement 
                under subsection (k)(2) if no change had been made to 
                such defined benefit plan and such other plan or 
                arrangement. For purposes of the preceding sentence, 
                consistency shall not be required with respect to 
                employees who were subject to different benefit 
                formulas under the defined benefit plan.
                    ``(B) References to closed class of participants.--
                References to a closed class of participants and 
                similar references to a closed class shall include 
                arrangements under which 1 or more classes of 
                participants are closed, except that 1 or more classes 
                of participants closed on different dates shall not be 
                aggregated for purposes of determining the date any 
                such class was closed.
                    ``(C) Highly compensated employee.--The term 
                `highly compensated employee' has the meaning given 
                such term in section 414(q).''.
    (b) Participation Requirements.--Paragraph (26) of section 401(a) 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph:
                    ``(I) Protected participants.--
                            ``(i) In general.--A plan shall be deemed 
                        to satisfy the requirements of subparagraph (A) 
                        if--
                                    ``(I) the plan is amended--
                                            ``(aa) to cease all benefit 
                                        accruals, or
                                            ``(bb) to provide future 
                                        benefit accruals only to a 
                                        closed class of participants,
                                    ``(II) the plan satisfies 
                                subparagraph (A) (without regard to 
                                this subparagraph) as of the effective 
                                date of the amendment, and
                                    ``(III) the amendment was adopted 
                                before April 5, 2017, or the plan is 
                                described in clause (ii).
                            ``(ii) Plans described.--A plan is 
                        described in this clause if the plan would be 
                        described in subsection (o)(1)(C), as applied 
                        for purposes of subsection (o)(1)(B)(iii)(IV) 
                        and by treating the effective date of the 
                        amendment as the date the class was closed for 
                        purposes of subsection (o)(1)(C).
                            ``(iii) Special rules.--For purposes of 
                        clause (i)(II), in applying section 
                        410(b)(6)(C), the amendments described in 
                        clause (i) shall not be treated as a 
                        significant change in coverage under section 
                        410(b)(6)(C)(i)(II).
                            ``(iv) Spun-off plans.--For purposes of 
                        this subparagraph, if a portion of a plan 
                        described in clause (i) is spun off to another 
                        employer, the treatment under clause (i) of the 
                        spun-off plan shall continue with respect to 
                        the other employer.''.
    (c) Effective Date.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act, without regard to whether any 
        plan modifications referred to in such amendments are adopted 
        or effective before, on, or after such date of enactment.
            (2) Special rules.--
                    (A) Election of earlier application.--At the 
                election of the plan sponsor, the amendments made by 
                this section shall apply to plan years beginning after 
                December 31, 2013.
                    (B) Closed classes of participants.--For purposes 
                of paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and 
                (2)(A)(iv) of section 401(o) of the Internal Revenue 
                Code of 1986 (as added by this section), a closed class 
                of participants shall be treated as being closed before 
                April 5, 2017, if the plan sponsor's intention to 
                create such closed class is reflected in formal written 
                documents and communicated to participants before such 
                date.
                    (C) Certain post-enactment plan amendments.--A plan 
                shall not be treated as failing to be eligible for the 
                application of section 401(o)(1)(A), 401(o)(1)(B)(iii), 
                or 401(a)(26) of such Code (as added by this section) 
                to such plan solely because in the case of--
                            (i) such section 401(o)(1)(A), the plan was 
                        amended before the date of the enactment of 
                        this Act to eliminate 1 or more benefits, 
                        rights, or features, and is further amended 
                        after such date of enactment to provide such 
                        previously eliminated benefits, rights, or 
                        features to a closed class of participants, or
                            (ii) such section 401(o)(1)(B)(iii) or 
                        section 401(a)(26), the plan was amended before 
                        the date of the enactment of this Act to cease 
                        all benefit accruals, and is further amended 
                        after such date of enactment to provide benefit 
                        accruals to a closed class of participants.
                Any such section shall only apply if the plan otherwise 
                meets the requirements of such section and in applying 
                such section, the date the class of participants is 
                closed shall be the effective date of the later 
                amendment.

                       TITLE III--OTHER BENEFITS

SEC. 301. BENEFITS PROVIDED TO VOLUNTEER FIREFIGHTERS AND EMERGENCY 
              MEDICAL RESPONDERS.

    (a) Increase in Dollar Limitation on Qualified Payments.--
Subparagraph (B) of section 139B(c)(2) of the Internal Revenue Code of 
1986 is amended by striking ``$30'' and inserting ``$50''.
    (b) Extension.--Section 139B(d) of the Internal Revenue Code of 
1986 is amended by striking ``beginning after December 31, 2010.'' and 
inserting ``beginning--
            ``(1) after December 31, 2010, and before January 1, 2020, 
        or
            ``(2) after December 31, 2020.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 302. EXPANSION OF SECTION 529 PLANS.

    (a) Distributions for Certain Expenses Associated With Registered 
Apprenticeship Programs.--Section 529(c) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new paragraph:
            ``(8) Treatment of certain expenses associated with 
        registered apprenticeship programs.--Any reference in this 
        subsection to the term `qualified higher education expense' 
        shall include a reference to expenses for fees, books, 
        supplies, and equipment required for the participation of a 
        designated beneficiary in an apprenticeship program registered 
        and certified with the Secretary of Labor under section 1 of 
        the National Apprenticeship Act (29 U.S.C. 50).''.
    (b) Distributions for Certain Homeschooling Expenses.--Section 
529(c)(7) of such Code is amended by striking ``include a reference 
to'' and all that follows and inserting: ``include a reference to--
                    ``(A) expenses for tuition in connection with 
                enrollment or attendance of a designated beneficiary at 
                an elementary or secondary public, private, or 
                religious school, and
                    ``(B) expenses, with respect to a designated 
                beneficiary, for--
                            ``(i) curriculum and curricular materials,
                            ``(ii) books or other instructional 
                        materials,
                            ``(iii) online educational materials,
                            ``(iv) tuition for tutoring or educational 
                        classes outside of the home (but only if the 
                        tutor or class instructor is not related 
                        (within the meaning of section 152(d)(2)) to 
                        the student),
                            ``(v) dual enrollment in an institution of 
                        higher education, and
                            ``(vi) educational therapies for students 
                        with disabilities,
                in connection with a homeschool (whether treated as a 
                homeschool or a private school for purposes of 
                applicable State law).''.
    (c) Distributions for Qualified Education Loan Repayments.--
            (1) In general.--Section 529(c) of such Code, as amended by 
        subsection (a), is amended by adding at the end the following 
        new paragraph:
            ``(9) Treatment of qualified education loan repayments.--
                    ``(A) In general.--Any reference in this subsection 
                to the term `qualified higher education expense' shall 
                include a reference to amounts paid as principal or 
                interest on any qualified education loan (as defined in 
                section 221(d)) of the designated beneficiary or a 
                sibling of the designated beneficiary.
                    ``(B) Limitation.--The amount of distributions 
                treated as a qualified higher education expense under 
                this paragraph with respect to the loans of any 
                individual shall not exceed $10,000 (reduced by the 
                amount of distributions so treated for all prior 
                taxable years).
                    ``(C) Special rules for siblings of the designated 
                beneficiary.--
                            ``(i) Separate accounting.--For purposes of 
                        subparagraph (B) and subsection (d), amounts 
                        treated as a qualified higher education expense 
                        with respect to the loans of a sibling of the 
                        designated beneficiary shall be taken into 
                        account with respect to such sibling and not 
                        with respect to such designated beneficiary.
                            ``(ii) Sibling defined.--For purposes of 
                        this paragraph, the term `sibling' means an 
                        individual who bears a relationship to the 
                        designated beneficiary which is described in 
                        section 152(d)(2)(B).''.
            (2) Coordination with deduction for student loan 
        interest.--Section 221(e)(1) of such Code is amended by adding 
        at the end the following: ``The deduction otherwise allowable 
        under subsection (a) (prior to the application of subsection 
        (b)) to the taxpayer for any taxable year shall be reduced (but 
        not below zero) by so much of the distributions treated as a 
        qualified higher education expense under section 529(c)(9) with 
        respect to loans of the taxpayer as would be includible in 
        gross income under section 529(c)(3)(A) for such taxable year 
        but for such treatment.''.
    (d) Distributions for Certain Elementary and Secondary School 
Expenses in Addition to Tuition.--Section 529(c)(7)(A) of such Code, as 
amended by subsection (b), is amended to read as follows:
                    ``(A) expenses described in section 530(b)(3)(A)(i) 
                in connection with enrollment or attendance of a 
                designated beneficiary at an elementary or secondary 
                public, private, or religious school, and''.
    (e) Effective Dates.--The amendments made by this section shall 
apply to distributions made after December 31, 2018.

                      TITLE IV--REVENUE PROVISIONS

SEC. 401. MODIFICATIONS OF REQUIRED DISTRIBUTION RULES FOR DESIGNATED 
              BENEFICIARIES.

    (a) Modification of Rules Where Employee Dies Before Entire 
Distribution.--
            (1) In general.--Section 401(a)(9) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        subparagraph:
                    ``(H) Special rules for certain defined 
                contribution plans.--In the case of a defined 
                contribution plan, if an employee dies before the 
                distribution of the employee's entire interest--
                            ``(i) In general.--Except in the case of a 
                        beneficiary who is not a designated 
                        beneficiary, subparagraph (B)(ii)--
                                    ``(I) shall be applied by 
                                substituting `10 years' for `5 years', 
                                and
                                    ``(II) shall apply whether or not 
                                distributions of the employee's 
                                interests have begun in accordance with 
                                subparagraph (A).
                            ``(ii) Exception only for eligible 
                        designated beneficiaries.--Subparagraph 
                        (B)(iii) shall apply only in the case of an 
                        eligible designated beneficiary.
                            ``(iii) Rules upon death of eligible 
                        designated beneficiary.--If an eligible 
                        designated beneficiary dies before the portion 
                        of the employee's interest to which this 
                        subparagraph applies is entirely distributed, 
                        the exception under clause (iii) shall not 
                        apply to any beneficiary of such eligible 
                        designated beneficiary and the remainder of 
                        such portion shall be distributed within 10 
                        years after the death of such eligible 
                        designated beneficiary.
                            ``(iv) Application to eligible retirement 
                        plans.--For purposes of applying the provisions 
                        of this subparagraph in determining the amounts 
                        required to be distributed pursuant to this 
                        paragraph, all eligible retirement plans (as 
                        defined in section 402(c)(8)(B)) other than a 
                        defined benefit plan shall be treated as a 
                        defined contribution plan.''.
            (2) Definition of eligible designated beneficiary.--Section 
        401(a)(9)(E) of such Code is amended to read as follows:
                    ``(E) Definitions and rules relating to designated 
                beneficiary.--For purposes of this paragraph--
                            ``(i) Designated beneficiary.--The term 
                        `designated beneficiary' means any individual 
                        designated as a beneficiary by the employee.
                            ``(ii) Eligible designated beneficiary.--
                        The term `eligible designated beneficiary' 
                        means, with respect to any employee, any 
                        designated beneficiary who is--
                                    ``(I) the surviving spouse of the 
                                employee,
                                    ``(II) subject to clause (iii), a 
                                child of the employee who has not 
                                reached majority (within the meaning of 
                                subparagraph (F)),
                                    ``(III) disabled (within the 
                                meaning of section 72(m)(7)),
                                    ``(IV) a chronically ill individual 
                                (within the meaning of section 
                                7702B(c)(2), except that the 
                                requirements of subparagraph (A)(i) 
                                thereof shall only be treated as met if 
                                there is a certification that, as of 
                                such date, the period of inability 
                                described in such subparagraph with 
                                respect to the individual is an 
                                indefinite one which is reasonably 
                                expected to be lengthy in nature), or
                                    ``(V) an individual not described 
                                in any of the preceding subclauses who 
                                is not more than 10 years younger than 
                                the employee.
                            ``(iii) Special rule for children.--Subject 
                        to subparagraph (F), an individual described in 
                        clause (ii)(II) shall cease to be an eligible 
                        designated beneficiary as of the date the 
                        individual reaches majority and any remainder 
                        of the portion of the individual's interest to 
                        which subparagraph (H)(ii) applies shall be 
                        distributed within 10 years after such date.
                            ``(iv) Time for determination of eligible 
                        designated beneficiary.--The determination of 
                        whether a designated beneficiary is an eligible 
                        designated beneficiary shall be made as of the 
                        date of death of the employee.''.
            (3) Effective dates.--
                    (A) In general.--Except as provided in this 
                paragraph and paragraphs (4) and (5), the amendments 
                made by this subsection shall apply to distributions 
                with respect to employees who die after December 31, 
                2019.
                    (B) Collective bargaining exception.--In the case 
                of a plan maintained pursuant to 1 or more collective 
                bargaining agreements between employee representatives 
                and 1 or more employers ratified before the date of 
                enactment of this Act, the amendments made by this 
                subsection shall apply to distributions with respect to 
                employees who die in calendar years beginning after the 
                earlier of--
                            (i) the later of--
                                    (I) the date on which the last of 
                                such collective bargaining agreements 
                                terminates (determined without regard 
                                to any extension thereof agreed to on 
                                or after the date of the enactment of 
                                this Act), or
                                    (II) December 31, 2019, or
                            (ii) December 31, 2021.
                For purposes of clause (i)(I), any plan amendment made 
                pursuant to a collective bargaining agreement relating 
                to the plan which amends the plan solely to conform to 
                any requirement added by this section shall not be 
                treated as a termination of such collective bargaining 
                agreement.
                    (C) Governmental plans.--In the case of a 
                governmental plan (as defined in section 414(d) of the 
                Internal Revenue Code of 1986), subparagraph (A) shall 
                be applied by substituting ``December 31, 2021'' for 
                ``December 31, 2019''.
            (4) Exception for certain existing annuity contracts.--
                    (A) In general.--The amendments made by this 
                subsection shall not apply to a qualified annuity which 
                is a binding annuity contract in effect on the date of 
                enactment of this Act and at all times thereafter.
                    (B) Qualified annuity.--For purposes of this 
                paragraph, the term ``qualified annuity'' means, with 
                respect to an employee, an annuity--
                            (i) which is a commercial annuity (as 
                        defined in section 3405(e)(6) of the Internal 
                        Revenue Code of 1986);
                            (ii) under which the annuity payments are 
                        made over the life of the employee or over the 
                        joint lives of such employee and a designated 
                        beneficiary (or over a period not extending 
                        beyond the life expectancy of such employee or 
                        the joint life expectancy of such employee and 
                        a designated beneficiary) in accordance with 
                        the regulations described in section 
                        401(a)(9)(A)(ii) of such Code (as in effect 
                        before such amendments) and which meets the 
                        other requirements of section 401(a)(9) of such 
                        Code (as so in effect) with respect to such 
                        payments; and
                            (iii) with respect to which--
                                    (I) annuity payments to the 
                                employee have begun before the date of 
                                enactment of this Act, and the employee 
                                has made an irrevocable election before 
                                such date as to the method and amount 
                                of the annuity payments to the employee 
                                or any designated beneficiaries; or
                                    (II) if subclause (I) does not 
                                apply, the employee has made an 
                                irrevocable election before the date of 
                                enactment of this Act as to the method 
                                and amount of the annuity payments to 
                                the employee or any designated 
                                beneficiaries.
            (5) Exception for certain beneficiaries.--
                    (A) In general.--If an employee dies before the 
                effective date, then, in applying the amendments made 
                by this subsection to such employee's designated 
                beneficiary who dies after such date--
                            (i) such amendments shall apply to any 
                        beneficiary of such designated beneficiary; and
                            (ii) the designated beneficiary shall be 
                        treated as an eligible designated beneficiary 
                        for purposes of applying section 
                        401(a)(9)(H)(ii) of the Internal Revenue Code 
                        of 1986 (as in effect after such amendments).
                    (B) Effective date.--For purposes of this 
                paragraph, the term ``effective date'' means the first 
                day of the first calendar year to which the amendments 
                made by this subsection apply to a plan with respect to 
                employees dying on or after such date.
    (b) Provisions Relating to Plan Amendments.--
            (1) In general.--If this subsection applies to any plan 
        amendment--
                    (A) such plan shall be treated as being operated in 
                accordance with the terms of the plan during the period 
                described in paragraph (2)(B)(i); and
                    (B) except as provided by the Secretary of the 
                Treasury, such 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.
            (2) Amendments to which subsection applies.--
                    (A) In general.--This subsection shall apply to any 
                amendment to any plan or which is made--
                            (i) pursuant to any amendment made by this 
                        section or pursuant to any regulation issued by 
                        the Secretary of the Treasury under this 
                        section or such amendments; and
                            (ii) on or before the last day of the first 
                        plan year beginning after December 31, 2021, or 
                        such later date as the Secretary of the 
                        Treasury may prescribe.
                In the case of a governmental or collectively bargained 
                plan to which subparagraph (B) or (C) of subsection 
                (a)(4) applies, clause (ii) shall be applied by 
                substituting the date which is 2 years after the date 
                otherwise applied under such clause.
                    (B) Conditions.--This subsection shall not apply to 
                any amendment unless--
                            (i) 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 
                                amendment not required by such 
                                legislative or regulatory amendment, 
                                the effective date specified by the 
                                plan); and
                                    (II) ending on the date described 
                                in subparagraph (A)(ii) (or, if 
                                earlier, the date the plan amendment is 
                                adopted),
                        the plan is operated as if such plan amendment 
                        were in effect; and
                            (ii) such plan amendment applies 
                        retroactively for such period.

SEC. 402. INCREASE IN PENALTY FOR FAILURE TO FILE.

    (a) In General.--The second sentence of subsection (a) of section 
6651 of the Internal Revenue Code of 1986 is amended by striking 
``$205'' and inserting ``$400''.
    (b) Inflation Adjustment.--Section 6651(j)(1) of such Code is 
amended by striking ``$205'' and inserting ``$400''.
    (c) Effective Date.--The amendment made by this section shall apply 
to returns the due date for which (including extensions) is after 
December 31, 2019.

SEC. 403. INCREASED PENALTIES FOR FAILURE TO FILE RETIREMENT PLAN 
              RETURNS.

    (a) In General.--Subsection (e) of section 6652 of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``$25'' and inserting ``$105''; and
            (2) by striking ``$15,000'' and inserting ``$50,000''.
    (b) Annual Registration Statement and Notification of Changes.--
Subsection (d) of section 6652 of the Internal Revenue Code of 1986 is 
amended--
            (1) by striking ``$1'' both places it appears in paragraphs 
        (1) and (2) and inserting ``$2'';
            (2) by striking ``$5,000'' in paragraph (1) and inserting 
        ``$10,000''; and
            (3) by striking ``$1,000'' in paragraph (2) and inserting 
        ``$5,000''.
    (c) Failure To Provide Notice.--Subsection (h) of section 6652 of 
the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$10'' and inserting ``$100''; and
            (2) by striking ``$5,000'' and inserting ``$50,000''.
    (d) Effective Date.--The amendments made by this subsection shall 
apply to returns, statements, and notifications required to be filed, 
and notices required to be provided, after December 31, 2019.

SEC. 404. INCREASE INFORMATION SHARING TO ADMINISTER EXCISE TAXES.

    (a) In General.--Section 6103(o) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(3) Taxes imposed by section 4481.--Returns and return 
        information with respect to taxes imposed by section 4481 shall 
        be open to inspection by or disclosure to officers and 
        employees of United States Customs and Border Protection of the 
        Department of Homeland Security whose official duties require 
        such inspection or disclosure for purposes of administering 
        such section.''.
    (b) Conforming Amendments.--Paragraph (4) of section 6103(p) of the 
Internal Revenue Code of 1986 is amended by striking ``or (o)(1)(A)'' 
each place it appears and inserting ``, (o)(1)(A), or (o)(3)''.
                                 <all>