117 S4808 RS: Enhancing American Retirement Now Act
U.S. Senate
2022-09-08
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.(a)This Act may be cited as the Enhancing American Retirement Now Act
or the EARN Act
.(b)Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Internal Revenue Code of 1986. (c)The table of contents for this Act is as follows:Sec. 1. Short title, etc.TITLE I—Individual retirementSec. 101. Secure deferral arrangements.Sec. 102. Matching payments for elective deferral and IRA contributions by certain individuals.Sec. 103. Modification of participation requirements for long-term, part-time workers.Sec. 104. Treatment of student loan payments as elective deferrals for purposes of matching contributions.Sec. 105. Withdrawals for certain emergency expenses.Sec. 106. Allow additional nonelective contributions to simple plans.Sec. 107. Small immediate financial incentives for contributing to a plan.Sec. 108. Indexing IRA catch-up limit.Sec. 109. Higher catch-up limit to apply at age 60, 61, 62, and 63.Sec. 110. Eliminate the first day of the month
requirement for governmental section 457(b) plans.Sec. 111. Tax treatment of certain nontrade or business SEP contributions.Sec. 112. Elimination of additional tax on corrective distributions of excess contributions.Sec. 113. Employer may rely on employee certifying that deemed hardship distribution conditions are met.Sec. 114. Penalty-free withdrawals from retirement plans for individuals in case of domestic abuse.Sec. 115. Amendments to increase benefit accruals under plan for previous plan year allowed until employer tax return due date.Sec. 116. Retroactive first year elective deferrals for sole proprietors.Sec. 117. Treasury guidance on rollovers.Sec. 118. Exemption for automatic portability transactions.Sec. 119. Application of section 415 limit for certain employees of rural electric cooperatives.Sec. 120. Insurance-dedicated exchange-traded funds.Sec. 121. Modification of age requirement for qualified ABLE programs.Sec. 122. Assist savers in recovering unclaimed savings bonds.TITLE II—RetireesSec. 201. Increase in age for required beginning date for mandatory distributions.Sec. 202. Qualifying longevity annuity contracts.Sec. 203. Remove required minimum distribution barriers for life annuities.Sec. 204. Eliminating a penalty on partial annuitization.Sec. 205. Reduction in excise tax on certain accumulations in qualified retirement plans.Sec. 206. Clarification of substantially equal periodic payment rule.Sec. 207. Recovery of retirement plan overpayments.Sec. 208. Retirement Savings Lost and Found.Sec. 209. Roth plan distribution rules.Sec. 210. One-time election for qualified charitable distribution to split-interest entity; increase in qualified charitable distribution limitation.Sec. 211. Exception to penalty on early distributions from qualified plans for individuals with a terminal illness.Sec. 212. Surviving spouse election to be treated as employee.Sec. 213. Long-term care contracts purchased with retirement plan distributions.TITLE III—Public safety officers and militarySec. 301. Military spouse retirement plan eligibility credit for small employers.Sec. 302. Distributions to firefighters.Sec. 303. Exclusion of certain disability-related first responder retirement payments.Sec. 304. Repeal of direct payment requirement on exclusion from gross income of distributions from governmental plans for health and long-term care insurance.Sec. 305. Modification of eligible age for exemption from early withdrawal penalty.Sec. 306. Exemption from early withdrawal penalty for certain State and local government corrections employees.TITLE IV—Nonprofits and educatorsSec. 401. Enhancement of 403(b) plans.Sec. 402. Hardship withdrawal rules for 403(b) plans.Sec. 403. Multiple employer 403(b) plans.TITLE V—Disaster reliefSec. 501. Special rules for use of retirement funds in connection with qualified federally declared disasters.TITLE VI—Employer plansSec. 601. Credit for employers with respect to modified safe harbor requirements.Sec. 602. Application of top heavy rules to defined contribution plans covering excludable employees.Sec. 603. Increase in credit limitation for small employer pension plan startup costs of certain employers.Sec. 604. Expansion of Employee Plans Compliance Resolution System.Sec. 605. Application of credit for small employer pension plan startup costs to employers which join an existing plan.Sec. 606. Safe harbor for corrections of employee elective deferral failures.Sec. 607. Reform of family attribution rule.Sec. 608. Contribution limit for simple IRAs.Sec. 609. Employers allowed to replace simple retirement accounts with safe harbor 401(k) plans during a year.Sec. 610. Starter 401(k) plans for employers with no retirement plan.Sec. 611. Credit for small employers that adapt an automatic portability arrangement.Sec. 612. Re-enrollment credit.Sec. 613. Corrections of mortality tables.Sec. 614. Enhancing retiree health benefits in pension plans.Sec. 615. Deferral of tax for certain sales of employer stock to employee stock ownership plan sponsored by S corporation.TITLE VII—NoticesSec. 701. Review and report to Congress relating to reporting and disclosure requirements.Sec. 702. Report to Congress on section 402(f) notices.Sec. 703. Eliminating unnecessary plan requirements related to unenrolled participants.TITLE VIII—Technical modificationsSec. 801. Repayment of qualified birth or adoption distribution limited to 3 years.Sec. 802. Amendments relating to Setting Every Community Up for Retirement Enhancement Act of 2019.Sec. 803. Modification of required minimum distribution rules for special needs trusts.TITLE IX—Plan amendmentsSec. 901. Provisions relating to plan amendments.TITLE X—Tax Court retirement provisionsSec. 1001. Provisions relating to judges of the Tax Court.Sec. 1002. Provisions relating to special trial judges of the Tax Court.TITLE XI—Revenue provisionsSec. 1101. Simple and SEP Roth IRAs.Sec. 1102. Elective deferrals generally limited to regular contribution limit.Sec. 1103. Optional treatment of employer matching or nonelective contributions as Roth contributions.Sec. 1104. Charitable conservation easements.<enum>I</enum><header>Individual retirement</header><section id="H799408C69F0A4BC59FA235FF9DB88210"><enum>101.</enum><header>Secure deferral arrangements</header><subsection id="HF6E512A4EB2B49BB9DD19F1E80BC0930"><enum>(a)</enum><header>In general</header><text>Subsection (k) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="HFCD4FC97D6C9411EA23DB6E0CB23795A"><paragraph id="H828A8986DC1D4D75B3FCFD0EF4086B84"><enum>(16)</enum><header>Alternative method for secure deferral arrangements to meet nondiscrimination requirements</header><subparagraph id="HF49FE7B2F3D14A12B17AE3229B20A54D"><enum>(A)</enum><header>In general</header><text>A secure deferral arrangement shall be treated as meeting the requirements of paragraph (3)(A)(ii).</text></subparagraph><subparagraph id="H6F6DADA65389429082EDC6CB04C6D3CB"><enum>(B)</enum><header>Secure deferral arrangement</header><text>For purposes of this paragraph, the term <term>secure deferral arrangement</term> means any cash or deferred arrangement which meets the requirements of subparagraphs (C), (D), and (E) of paragraph (13), except as modified by this paragraph.</text></subparagraph><subparagraph id="HBC2955DACC694DA1B666AF5758F19518"><enum>(C)</enum><header>Qualified percentage</header><text>For purposes of this paragraph, in applying paragraph (13)(C) with respect to any employee, the term <term>qualified percentage</term> means, in lieu of the meaning given such term in paragraph (13)(C)(iii), any percentage determined under the arrangement if such percentage is applied uniformly and is—</text><clause id="H4C5F09A097C846FC919418CE4F902D88"><enum>(i)</enum><text>at least 6 percent, but not greater than 10 percent, during the period ending on the last day of the first plan year which begins after the date on which the first elective contribution described in paragraph (13)(C)(i) is made with respect to such employee,</text></clause><clause id="HCB87BC241C074436B6F48DA5DE43A161"><enum>(ii)</enum><text>at least 7 percent during the first plan year following the plan year described in clause (i),</text></clause><clause id="H2C45C08C388543099C61440AF9A17A22"><enum>(iii)</enum><text>at least 8 percent during the second plan year following the plan year described in clause (i),</text></clause><clause id="HFC2087DC3AB54C7280DDFF223857D81B"><enum>(iv)</enum><text>at least 9 percent during the third plan year following the plan year described in clause (i), and</text></clause><clause id="H4F9353197B0D47E8ABFC0CC78670FED3"><enum>(v)</enum><text>at least 10 percent during any subsequent plan year.</text></clause></subparagraph><subparagraph id="H74477404ECE04E55A3C14079CEB69FE2"><enum>(D)</enum><header>Matching contributions</header><clause id="H90F43C6FB6114D30B846584144FB80B4"><enum>(i)</enum><header>In general</header><text>For purposes of this paragraph, an arrangement shall be treated as having met the requirements of paragraph (13)(D)(i) if and only if the employer makes matching contributions on behalf of each employee who is not a highly compensated employee in an amount equal to the sum of—</text><subclause id="H14FB502994F4432BAFCBCCD871410D06"><enum>(I)</enum><text>100 percent of the elective contributions of the employee to the extent such contributions do not exceed 2 percent of compensation,</text></subclause><subclause id="HAA0080CD3ED343E9872FCEB90F3869E8"><enum>(II)</enum><text>50 percent of so much of such contributions as exceed 2 percent but do not exceed 6 percent of compensation, plus</text></subclause><subclause id="H8DD83776CDD34E77AFE219B4C3422AF3"><enum>(III)</enum><text>20 percent of so much of such contributions as exceed 6 percent but do not exceed 10 percent of compensation.</text></subclause></clause><clause id="H404A0EB26DB64094844ABFBF13B8816C"><enum>(ii)</enum><header>Rules for matching contributions</header><subclause id="id60FA53E1C9E64811AC0887208BAC7F45"><enum>(I)</enum><header>In general</header><text>The rate of matching contributions with respect to each increment of employee contributions may be higher than the rate specified in clause (i) so long as such rate does not increase as an employee’s rate of elective contributions increases.</text></subclause><subclause id="idD74C70D47BB74FF880CB825F021095DC"><enum>(II)</enum><header>Rules relating to alternative plan designs</header><text>The rules of paragraph (12)(B)(iii) shall not apply for purposes of clause (i). </text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H369E6A4BA28C416C971EBDCC95EFF962"><enum>(b)</enum><header>Matching contributions</header><text display-inline="yes-display-inline">Subsection (m) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401</external-xref> is amended by redesignating paragraph (13) as paragraph (14) and by inserting after paragraph (12) the following new paragraph:</text><quoted-block style="OLC" id="HE33DC04A02A740B1B0030CC9DB3EFC94"><paragraph id="HACF65227A5A149A99DC233A3553EDAD5"><enum>(13)</enum><header>Alternative method for secure deferral arrangements</header><text>A defined contribution plan shall be treated as meeting the requirements of paragraph (2) with respect to matching contributions if the plan—</text><subparagraph commented="no" id="HE3E2A2E4524E46A3ACC38749174FC4E7"><enum>(A)</enum><text>is a secure deferral arrangement (as defined in subsection (k)(16)),</text></subparagraph><subparagraph id="H0C652B98682A4113880A75A5DDC769FC"><enum>(B)</enum><text>meets the requirements of clauses (ii) and (iii) of paragraph (11)(B), and</text></subparagraph><subparagraph id="H31E335DF8785421781D44B926ECB83CF"><enum>(C)</enum><text>provides that matching contributions on behalf of any employee may not be made with respect to an employee’s contributions or elective deferrals in excess of 10 percent of the employee’s compensation.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0EE7428ED2DC4CB197361CF60AD1C104"><enum>(c)</enum><header>Conforming amendments</header><paragraph id="id40CDBEF5375847158430DC148409FECE"><enum>(1)</enum><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(12)(F)</external-xref> is amended by striking <quote>or paragraph (13)(D)(i)(I)</quote> and inserting <quote>, paragraph (13)(D)(i)(I), or paragraph (16)(D)</quote>.</text></paragraph><paragraph commented="no" id="HF4823BEA9D93442B99F96C54A30DF0C6"><enum>(2)</enum><text>Subclause (II) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(15)(B)(i)</external-xref> is amended by striking <quote>subsection (a)(4), paragraphs (3), (12), and (13)</quote> and inserting <quote>paragraphs (3), (12), (13), and (16), subsection (a)(4)</quote>.</text></paragraph><paragraph id="id0661FC6B17034CE8B243C0CE5FB907D0"><enum>(3)</enum><text>Subparagraph (H) of <external-xref legal-doc="usc" parsable-cite="usc/26/416">section 416(g)(4)</external-xref> is amended—</text><subparagraph id="H8B5A1A3CAC5B41618376F86E804E40DD"><enum>(A)</enum><text>in clause (i), by striking <quote>section 401(k)(12) or 401(k)(13)</quote> and inserting <quote>paragraph (12), (13), or (16) of section 401(k)</quote>, and</text></subparagraph><subparagraph id="H1998BE57AF784AC680DF4C42E80469E7"><enum>(B)</enum><text>in clause (ii), by striking <quote>section 401(m)(11) or 401(m)(12)</quote> and inserting <quote>paragraph (11), (12), or (13) of section 401(m)</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H2D35E8683B6F401E93A42A2148099315"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2023.</text></subsection></section><section commented="no" id="H0EB98DE2D6384FEFA8EC324EEDA59D82"><enum>102.</enum><header>Matching payments for elective deferral and IRA contributions by certain individuals</header><subsection commented="no" id="HC69D18C359D0470D9F90A76CD0495BD9"><enum>(a)</enum><header>In general</header><text>Subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H37C0A695FDC644BCA52AE4CFFF723377"><section commented="no" id="H17C03024F24646E5B1853839B017BE5E"><enum>6433.</enum><header>Matching payments for elective deferral and IRA contributions by certain individuals</header><subsection commented="no" id="H48D8D71F051B4414A0C266CD12701EB5"><enum>(a)</enum><header>In general</header><paragraph commented="no" id="H46C8EFCA11914EE888BE1E93AE3C8DE0"><enum>(1)</enum><header>Allowance of credit</header><text>Any eligible individual who makes qualified retirement savings contributions for the taxable year shall be allowed a credit for such taxable year in an amount equal to the applicable percentage of so much of the qualified retirement savings contributions made by such eligible individual for the taxable year as does not exceed $2,000.</text></paragraph><paragraph commented="no" id="HB75B01D9D8C845629A2146BB31584FE0"><enum>(2)</enum><header>Payment of credit</header><subparagraph commented="no" id="idE43EB27C10A642D5B6FDCA8BF7CB9D83"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (A), the credit under this section shall be—</text><clause commented="no" id="H2D28C35F4BC5419986AD9376ED51EBF7"><enum>(i)</enum><text display-inline="yes-display-inline">treated as allowed by subpart C of part IV of subchapter A of chapter 1, and</text></clause><clause commented="no" id="H5C2269EE67284EAFAD17C520DE69963D"><enum>(ii)</enum><text>paid by the Secretary as a contribution (as soon as practicable after the eligible individual has filed a tax return making a claim for such credit for the taxable year) to the applicable retirement savings vehicle of an eligible individual.</text></clause></subparagraph><subparagraph commented="no" id="H80CBCEE0288D463583DC8E5A4FCD5B16"><enum>(B)</enum><header>Exception</header><text>In the case of an eligible individual with respect to whom the credit determined under paragraph (1) is greater than zero but less than $100 for the taxable year, the eligible individual may elect to have subparagraph (A) not apply. </text></subparagraph></paragraph></subsection><subsection commented="no" id="H0B49042282CE46189432ACB68D10852D"><enum>(b)</enum><header>Applicable percentage</header><text>For purposes of this section—</text><paragraph commented="no" id="H95BFCA446E8548A399A18B43C0D218EA"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the applicable percentage is 50 percent.</text></paragraph><paragraph commented="no" id="H3CB593CAEC9C44D5AE84F87D91A97D10"><enum>(2)</enum><header>Phaseout</header><text>The percentage under paragraph (1) shall be reduced (but not below zero) by the number of percentage points which bears the same ratio to 50 percentage points as—</text><subparagraph commented="no" id="HE833D0A386DC42D8929367228D0635CF"><enum>(A)</enum><text>the excess of—</text><clause commented="no" id="H771CBE147C6447509D7B1C0D278CCC74"><enum>(i)</enum><text>the taxpayer’s modified adjusted gross income for such taxable year, over</text></clause><clause commented="no" id="HDF21C5A814184FF1BA4EEB2DC9614439"><enum>(ii)</enum><text>the applicable dollar amount, bears to</text></clause></subparagraph><subparagraph commented="no" id="HD0E7BD22642B4115A52F381B946FFB8D"><enum>(B)</enum><text>the phaseout range.</text></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">If any reduction determined under this paragraph is not a whole percentage point, such reduction shall be rounded to the next lowest whole percentage point.</continuation-text></paragraph><paragraph commented="no" id="H34D0A4D427094EA18DA04D5290308ECB"><enum>(3)</enum><header>Applicable dollar amount; phaseout range</header><subparagraph commented="no" id="HF0E817062FBF402180121E6D80C47440"><enum>(A)</enum><header>Joint returns and surviving spouses</header><text>Except as provided in subparagraph (B)—</text><clause commented="no" id="H167AAA5F3CCF4222B0438DA6042E4B21"><enum>(i)</enum><text>the applicable dollar amount is $41,000, and</text></clause><clause commented="no" id="HB62CC23BB0504DA98930CFAD4DD7125D"><enum>(ii)</enum><text>the phaseout range is $30,000.</text></clause></subparagraph><subparagraph commented="no" id="H9DABCFECE25744A89A14C2729BCD36DC"><enum>(B)</enum><header>Other returns</header><text display-inline="yes-display-inline">In the case of—</text><clause commented="no" id="H0256FE5BB3234C3EBD48C217E8605C49"><enum>(i)</enum><text display-inline="yes-display-inline">a head of a household (as defined in section 2(b)), the applicable dollar amount and the phaseout range shall be <fraction>3/4</fraction> of the amounts applicable under subparagraph (A) (as adjusted under subsection (h)), and</text></clause><clause commented="no" id="HF9F27D81FCCF44AD8B7BB4CB163DD484"><enum>(ii)</enum><text display-inline="yes-display-inline">any taxpayer who is not filing a joint return, who is not a head of a household (as so defined), and who is not a surviving spouse (as defined in section 2(a)), the applicable dollar amount and the phaseout range shall be <fraction>½</fraction> of the amounts applicable under subparagraph (A) (as so adjusted).</text></clause></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HC5AD2A88A42F4FB49768276B551FDCE9"><enum>(c)</enum><header display-inline="yes-display-inline">Eligible individual</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph commented="no" display-inline="no-display-inline" id="H108550ED2D8D42D698C0071492607955"><enum>(1)</enum><header>In general</header><text>The term <term>eligible individual</term> means any individual if such individual has attained the age of 18 as of the close of the taxable year.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H4D3650F2140F41CD932FB9E3D2EBA838"><enum>(2)</enum><header>Dependents and full-time students not eligible</header><text>The term <quote>eligible individual</quote> shall not include—</text><subparagraph commented="no" id="H6F20C5F8C8124BE888E07D90AEF2643E"><enum>(A)</enum><text>any individual with respect to whom a deduction under section 151 is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins, and</text></subparagraph><subparagraph commented="no" id="HBAA0AD9794B742479A68F191CD31E247"><enum>(B)</enum><text>any individual who is a student (as defined in section 152(f)(2)).</text></subparagraph></paragraph><paragraph commented="no" id="H616CC927243A4E9F982C8B602850900F"><enum>(3)</enum><header>Nonresident aliens not eligible</header><text display-inline="yes-display-inline">The term <quote>eligible individual</quote> shall not include any individual who is a nonresident alien individual for any portion of the taxable year unless such individual is treated for such taxable year as a resident of the United States for purposes of chapter 1 by reason of an election under subsection (g) or (h) of section 6013.</text></paragraph></subsection><subsection commented="no" id="HDB457BB3ECA44DED82E5D4D05C3FA14B"><enum>(d)</enum><header>Qualified retirement savings contributions</header><text>For purposes of this section—</text><paragraph commented="no" id="HFF568A7B824E47C68502519E9A1F428D"><enum>(1)</enum><header>In general</header><text>The term <term>qualified retirement savings contributions</term> means, with respect to any taxable year, the sum of—</text><subparagraph commented="no" id="H5A354DE5AFDC4A328E179C0B3311D263"><enum>(A)</enum><text>the amount of the qualified retirement contributions (as defined in section 219(e)) made by the eligible individual,</text></subparagraph><subparagraph commented="no" id="H3343C2A560AD4E7AB2A892D3D6F60142"><enum>(B)</enum><text>the amount of—</text><clause commented="no" id="HA99CB3E4A69D4DE396DBE61B2412040C"><enum>(i)</enum><text>any elective deferrals (as defined in section 402(g)(3)) of such individual, and</text></clause><clause commented="no" id="H7D9E735C5A4C4C98A6A8481DAD568DB9"><enum>(ii)</enum><text>any elective deferral of compensation by such individual under an eligible deferred compensation plan (as defined in section 457(b)) of an eligible employer described in section 457(e)(1)(A), and</text></clause></subparagraph><subparagraph commented="no" id="HC2503B6FE72E46DBB4A1E31AD34A07D3"><enum>(C)</enum><text>the amount of voluntary employee contributions by such individual to any qualified retirement plan (as defined in section 4974(c)).</text></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">Such term shall not include any amount attributable to a payment under subsection (a)(2).</continuation-text></paragraph><paragraph commented="no" id="H904966F734B34B2989CB8CBA69F1F1E2"><enum>(2)</enum><header>Reduction for certain distributions</header><subparagraph commented="no" id="H235D01ABBEA6467BB8974AE6EF264E78"><enum>(A)</enum><header>In general</header><text>The qualified retirement savings contributions determined under paragraph (1) for a taxable year shall be reduced (but not below zero) by the aggregate distributions received by the individual during the testing period from any entity of a type to which contributions under paragraph (1) may be made.</text></subparagraph><subparagraph commented="no" id="H84288A6634FB4428B18525BCBC328381"><enum>(B)</enum><header>Testing period</header><text>For purposes of subparagraph (A), the testing period, with respect to a taxable year, is the period which includes—</text><clause commented="no" id="H453E67BCAC5C40F392B2AFA37B504B54"><enum>(i)</enum><text>such taxable year,</text></clause><clause commented="no" id="HC92500B72130430C8555B5D1FB99B0D5"><enum>(ii)</enum><text>the 2 preceding taxable years, and</text></clause><clause commented="no" id="H9957CD1232EA46C3A6EDB75DA5755DCD"><enum>(iii)</enum><text>the period after such taxable year and before the due date (including extensions) for filing the return of tax for such taxable year.</text></clause></subparagraph><subparagraph commented="no" id="H0C49D77C04174A0F976576F94A70D8CD"><enum>(C)</enum><header>Excepted distributions</header><text>There shall not be taken into account under subparagraph (A)—</text><clause commented="no" id="H6FA06D597A59406FBA96D39FFAE9A46E"><enum>(i)</enum><text>any distribution referred to in section 72(p), 401(k)(8), 401(m)(6), 402(g)(2), 404(k), or 408(d)(4),</text></clause><clause commented="no" id="HC84393677C844040A3119511B5CB50E3"><enum>(ii)</enum><text>any distribution to which section 408(d)(3) or 408A(d)(3) applies, and</text></clause><clause commented="no" id="HA2F44D298CAE42CC85AF9BB04097ED0E"><enum>(iii)</enum><text>any portion of a distribution if such portion is transferred or paid in a rollover contribution (as defined in section 402(c), 403(a)(4), 403(b)(8), 408A(e), or 457(e)(16)) to an account or plan to which qualified retirement savings contributions can be made.</text></clause></subparagraph><subparagraph commented="no" id="H15F56ECBE11544B384B32500FCEFBA13"><enum>(D)</enum><header>Treatment of distributions received by spouse of individual</header><text>For purposes of determining distributions received by an individual under subparagraph (A) for any taxable year, any distribution received by the spouse of such individual shall be treated as received by such individual if such individual and spouse file a joint return for such taxable year and for the taxable year during which the spouse receives the distribution.</text></subparagraph></paragraph></subsection><subsection commented="no" id="H6DD31A5E588D47558E68E2DAB1327750"><enum>(e)</enum><header>Applicable retirement savings vehicle</header><paragraph commented="no" id="H4674DB9D1FBF496CA930DDA075B97ED2"><enum>(1)</enum><header>In general</header><text>The term <term>applicable retirement savings vehicle</term> means an account or plan elected by the eligible individual under paragraph (2).</text></paragraph><paragraph commented="no" id="HE40FBC45514C442E95BA10A53902825C"><enum>(2)</enum><header>Election</header><text>Any such election to have contributed the amount determined under subsection (a) shall be to an account or plan which—</text><subparagraph commented="no" id="H1142D9DAD90A473F95AB1FDB50BDC250"><enum>(A)</enum><text>is—</text><clause commented="no" id="idDC6999BB6B324033B3258D39C99170D6"><enum>(i)</enum><text>the portion of a plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B) which does not consist of a qualified Roth contribution program (as defined in section 402A(b)), or</text></clause><clause commented="no" id="idA5D5512A7E104189AE985BA11E72CB48"><enum>(ii)</enum><text>an individual retirement plan which is not a Roth IRA,</text></clause></subparagraph><subparagraph commented="no" id="HDB0D5075B5204DD28469AC7AB4AF0A72"><enum>(B)</enum><text>is for the benefit of the eligible individual,</text></subparagraph><subparagraph commented="no" id="H2B0B70AAEA4B449DB3E641BF9410D29F"><enum>(C)</enum><text>accepts contributions made under this section, and</text></subparagraph><subparagraph commented="no" id="HD20B8368C4AD41CBB39EF884F2181124"><enum>(D)</enum><text>is designated by such individual (in such form and manner as the Secretary may provide).</text></subparagraph></paragraph></subsection><subsection commented="no" id="H075B781AB3B149958AB978702FF80C6C"><enum>(f)</enum><header>Other definitions and special rules</header><paragraph commented="no" id="H1BC207DF6049459FB11FB5FFAE6AD565"><enum>(1)</enum><header>Modified adjusted gross income</header><text>For purposes of this section, the term <term>modified adjusted gross income</term> means adjusted gross income—</text><subparagraph commented="no" id="H6A482D9A648D42E4A298D3FBCB0A3D41"><enum>(A)</enum><text>determined without regard to sections 911, 931, and 933, and</text></subparagraph><subparagraph commented="no" id="H227CB4555434487BB266C7DC0E4F2B9F"><enum>(B)</enum><text>determined without regard to any exclusion or deduction allowed for any qualified retirement savings contribution made during the taxable year.</text></subparagraph></paragraph><paragraph commented="no" id="H937377F1CB9540F9BE335303E5AB4347"><enum>(2)</enum><header>Treatment of contributions</header><text>In the case of any contribution under subsection (a)(2)—</text><subparagraph commented="no" id="H96E7C200E184424CB4F9CF9E7227EA66"><enum>(A)</enum><text>except as otherwise provided in this section or by the Secretary under regulations, such contribution shall be treated as—</text><clause commented="no" id="HA288E7E03388493280EC58F76A40EDD4"><enum>(i)</enum><text>an elective deferral made by the individual, if contributed to an applicable retirement savings vehicle described in subsection (e)(2)(A)(i), or</text></clause><clause commented="no" id="HD1BF5F81DF1A4B64B9F5E40B5CDD3801"><enum>(ii)</enum><text>as an individual retirement plan contribution made by such individual, if contributed to such a plan, and</text></clause></subparagraph><subparagraph commented="no" id="H3D5C60AA3BE6461DBD4249F23A82617F"><enum>(B)</enum><text>such contribution shall not be taken into account with respect to any applicable limitation under sections 402(g)(1), 403(b), 408(a)(1), 408(b)(2)(B), 408A(c)(2), 414(v)(2), 415(c), or 457(b)(2), and shall be disregarded for purposes of sections 401(a)(4), 401(k)(3), 401(k)(11)(B)(i)(III), and 416. </text></subparagraph></paragraph><paragraph commented="no" id="H3C661F83411F4F1ABDB002C8E84D66B6"><enum>(3)</enum><header>Treatment of qualified plans, etc</header><text>A plan or arrangement to which a contribution is made under this section shall not be treated as violating any requirement under section 401, 403, 408, or 457 solely by reason of accepting such contribution.</text></paragraph><paragraph commented="no" id="H83ED8030899A461DB481D0A380C0A2EC"><enum>(4)</enum><header>Erroneous credits</header><subparagraph commented="no" id="HF25A8B6FDACF4CF18662834FE7EF2F98"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">If any contribution is erroneously paid under subsection (a)(2), including a payment that is not made to an applicable retirement savings vehicle, the amount of such erroneous payment shall be treated as an underpayment of tax (other than for purposes of part II of subchapter A of chapter 68) for the taxable year in which the Secretary determines the payment is erroneous.</text></subparagraph><subparagraph commented="no" id="H5CC1F1DAC3364CCA954F24EBF175CCE5"><enum>(B)</enum><header>Distribution of erroneous credits</header><text>In the case of a contribution to which subparagraph (A) applies—</text><clause commented="no" id="H6F2C4565AD7D436C9D4F703478185B8C"><enum>(i)</enum><text>section 402(a), 403(a)(1), 403(b)(1), 408(d)(1), or 457(a)(1), whichever is applicable, shall not apply to any distribution of such contribution, and section 72(t) shall not apply to the distribution of such contribution or any income attributable thereto, if such distribution is received not later than the day prescribed by law (including extensions of time) for filing the individual’s return for such taxable year, and</text></clause><clause commented="no" id="H8D22C492B91E49CC9052601073836A4C"><enum>(ii)</enum><text>any plan or arrangement from which such a distribution is made under this subparagraph shall not be treated as violating any requirement under section 401, 403, or 457 solely by reason of making such distribution.</text></clause></subparagraph></paragraph><paragraph commented="no" id="H87B14054C83644A3A5CB0AA2A4B2D04C"><enum>(5)</enum><header>Exception from reduction or offset</header><text display-inline="yes-display-inline">Any payment made to any individual under this section shall not be—</text><subparagraph commented="no" id="HD04763E9A2E5464BB508AFF58A725A2A"><enum>(A)</enum><text>subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 or any similar authority permitting offset, or</text></subparagraph><subparagraph commented="no" id="HCF17FF4673CA4420BE80E970A699CE4C"><enum>(B)</enum><text>reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection.</text></subparagraph></paragraph></subsection><subsection commented="no" id="H905CB8CA17F14356BD5337692F7E5FBB"><enum>(g)</enum><header>Provision by Secretary of information relating to contributions</header><text>In the case of an amount elected by an eligible individual to be contributed to an account or plan under subsection (e)(2), the Secretary shall provide general guidance applicable to the custodian of the account or the plan sponsor, as the case may be, detailing the treatment of such contribution under subsection (f)(2) and the reporting requirements with respect to such contribution under section 6058, particularly as such requirements are modified pursuant to section 102(c)(2) of the <short-title>Enhancing American Retirement Now Act</short-title>. </text></subsection><subsection commented="no" id="H7E4B32BC2EAF4A24BBA785FEB1A520C3"><enum>(h)</enum><header>Inflation adjustments</header><paragraph commented="no" id="HCB9C0C6C9EC24CA8841099434E9A2A40"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxable year beginning in a calendar year after 2027, the $41,000 amount in subsection (b)(3)(A)(i) shall be increased by an amount equal to—</text><subparagraph commented="no" id="H09DF97F7FBB544CCB45DD49902C4302D"><enum>(A)</enum><text>such dollar amount, multiplied by</text></subparagraph><subparagraph commented="no" id="H3A48A8389BF14AA99B563E2658BE69D2"><enum>(B)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2026</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subparagraph></paragraph><paragraph commented="no" id="H3B99471A106741FE8C7EBAF7BA7599C2"><enum>(2)</enum><header>Rounding</header><text>Any increase determined under paragraph (1) shall be rounded to the nearest multiple of $1,000.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HE8A892F17C3F4B98BB807278D93BDCD8"><enum>(b)</enum><header>Treatment of Certain Possessions</header><paragraph commented="no" id="H63881D377F474356BE7F15AD7CCF3489"><enum>(1)</enum><header>Payments to possessions with mirror code tax systems</header><text>The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.</text></paragraph><paragraph commented="no" id="HAD54A81A56A64A81B77483E9B769973C"><enum>(2)</enum><header>Payments to other possessions</header><text>The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents.</text></paragraph><paragraph commented="no" id="H15331110C22A40399D66F6F1AF688B72"><enum>(3)</enum><header>Coordination with credit allowed against United States income taxes</header><text display-inline="yes-display-inline">No credit shall be allowed against United States income taxes under <external-xref legal-doc="usc" parsable-cite="usc/26/6433">section 6433</external-xref> of the Internal Revenue Code of 1986 (as added by this section) to any person—</text><subparagraph commented="no" id="H2641F8827ED643738372F206321EFED1"><enum>(A)</enum><text>to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or</text></subparagraph><subparagraph commented="no" id="H485BA45C2048492EA8F6FEB78E22B5F3"><enum>(B)</enum><text>who is eligible for a payment under a plan described in paragraph (2).</text></subparagraph></paragraph><paragraph commented="no" id="H265B2FFF353543DF83E01CF3D8B3386F"><enum>(4)</enum><header>Mirror code tax system</header><text display-inline="yes-display-inline">For purposes of this subsection, the term <quote>mirror code tax system</quote> means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.</text></paragraph><paragraph commented="no" id="H21B70712D1D2412BB4EF26DBB520298E"><enum>(5)</enum><header>Treatment of payments</header><text display-inline="yes-display-inline">For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.</text></paragraph></subsection><subsection commented="no" id="H19F57F0A951D4B15B44B67E11BED7444"><enum>(c)</enum><header>Administrative provisions</header><paragraph commented="no" id="H6E553F0B2F994FBAB7071FEC34C74824"><enum>(1)</enum><header>Deficiencies</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/6211">Section 6211(b)(4)</external-xref> is amended by striking <quote>and 7527A</quote> and inserting <quote>7527A, and 6433</quote>.</text></paragraph><paragraph commented="no" id="H8D867FE553EB4D20B9554ADDD429C971"><enum>(2)</enum><header>Reporting</header><text>The Secretary of the Treasury shall amend the forms relating to reports required under <external-xref legal-doc="usc" parsable-cite="usc/26/6058">section 6058</external-xref> of the Internal Revenue Code of 1986 to require—</text><subparagraph commented="no" id="H0668E2873AF84C9E8657771B54613339"><enum>(A)</enum><text>separate reporting of the aggregate amount of contributions received by the plan during the year under <external-xref legal-doc="usc" parsable-cite="usc/26/6433">section 6433</external-xref> of the Internal Revenue Code of 1986 (as added by this section), and</text></subparagraph><subparagraph commented="no" id="HC01AE439BE8749B49D47F112DEC11B18"><enum>(B)</enum><text>similar reporting with respect to individual retirement accounts (as defined in section 408 of such Code) and individual retirement annuities (as defined in section 408(b) of such Code). </text></subparagraph></paragraph></subsection><subsection commented="no" id="H2310D617597E4FDDBE7655D9DDDC4E7F"><enum>(d)</enum><header>Payment authority</header><text>Section 1324(b)(2) of title 31, United States Code, is amended by striking <quote>or 7527A</quote> and inserting <quote>7527A, or 6433</quote>.</text></subsection><subsection commented="no" id="H422235A7003C4B85894E4EE788B276F6"><enum>(e)</enum><header>Conforming amendments</header><paragraph commented="no" id="id2E4AFAB9D7A3421B8228868B4F5613D9"><enum>(1)</enum><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/25B">section 25B(d)</external-xref> is amended by striking <quote>the sum of—</quote> and all that follows through <quote>the amount of contributions made before January 1, 2026</quote> and inserting <quote>the amount of contributions made before January 1, 2026</quote>.</text></paragraph><paragraph commented="no" id="H34960C02C83946B4AEA553FB6BBF254E"><enum>(2)</enum><text>The table of sections for subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/65">chapter 65</external-xref> is amended by adding at the end the following new item:</text><quoted-block style="OLC" id="H2B9EC9D4C08340ED93E3754C312E40CA"><toc><toc-entry level="section" idref="H17C03024F24646E5B1853839B017BE5E">Sec. 6433. Matching payments for elective deferral and IRA contributions by certain individuals.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H622F8FF47BA44B1F9F908DB51505D0A9"><enum>(f)</enum><header display-inline="yes-display-inline">Effective date</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to taxable years beginning after December 31, 2026. </text></subsection></section><section commented="no" id="HB71432F4EB5544978930474DBE65DFD0"><enum>103.</enum><header>Modification of participation requirements for long-term, part-time workers</header><subsection commented="no" id="HFE60F4C6D89F498798674BF34DD65F6A"><enum>(a)</enum><header>Participation requirement</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(2)(D)</external-xref> is amended by striking <quote>3 consecutive</quote> and inserting <quote>2 consecutive</quote>.</text></subsection><subsection id="H1A1D3393CFDD4E75B69B1EFD16D6678C"><enum>(b)</enum><header>Pre-<enum-in-header>2021</enum-in-header> service</header><text>Section 112(b) of the Setting Every Community Up for Retirement Enhancement Act of 2019 (<external-xref legal-doc="usc" parsable-cite="usc/26/401">26 U.S.C. 401</external-xref> note) is amended by striking <quote>section 401(k)(2)(D)(ii)</quote> and inserting <quote>paragraphs (2)(D)(ii) and (15)(B)(iii) of section 401(k)</quote>.</text></subsection><subsection id="idA27AD5CEE4BC4D0EBA0A4D4086716DDD"><enum>(c)</enum><header>Coordination with rules for top-heavy plans</header><text>Subparagraph (H) of section 416(g)(4), as amended by this Act, is further amended by inserting before <quote>If, but</quote> the following: <quote>Such term shall not include a plan solely because such plan does not provide matching contributions to employees described in section 401(k)(15)(B)(i).</quote>.</text></subsection><subsection commented="no" id="H5985FB0A0C724980BF986D1B3400C1C4"><enum>(d)</enum><header>Effective dates</header><paragraph commented="no" id="H37C95FC7CF5E4C29AB4F70E4B47F9A36"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall apply to plan years beginning after December 31, 2022.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H902425A3879F493FBADAB3BABBFE2FD3"><enum>(2)</enum><header>Pre-2021 service and top-heavy rules</header><text display-inline="yes-display-inline">The amendments made by subsections (b) and (c) shall take effect as if included in the enactment of section 112 of the Setting Every Community Up for Retirement Enhancement Act of 2019.</text></paragraph></subsection></section><section section-type="subsequent-section" id="idA6A29FD6AB1343B6BA1CECD2452F6403"><enum>104.</enum><header>Treatment of student loan payments as elective deferrals for purposes of matching contributions</header><subsection id="id83E146F7B1D04BFBB07333BD7F3655D4"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(m)(4)</external-xref> is amended by striking <quote>and</quote> at the end of clause (i), by striking the period at the end of clause (ii) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text><quoted-block style="OLC" act-name="" id="id3C3B8F49031C4BC28AA7781C39DC669C"><clause id="id031B641418A54A828ED6685607FA450F"><enum>(iii)</enum><text>subject to the requirements of paragraph (14), any employer contribution made to a defined contribution plan on behalf of an employee on account of a qualified student loan payment.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idFD984EF5969F483597CAEBDD7EB28A73"><enum>(b)</enum><header>Qualified student loan payment</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(m)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" act-name="" id="idE1829B4023A34B8D8DE203B0C637A2A2"><subparagraph id="idD332416F346843F09BD1B23A0C03003E"><enum>(D)</enum><header>Qualified student loan payment</header><text>The term <term>qualified student loan payment</term> means a payment made by an employee in repayment of a qualified education loan (as defined in section 221(d)(1)) incurred by the employee to pay qualified higher education expenses, but only—</text><clause id="id0E5F683B7F37404ABFA23D999FD7EEDA"><enum>(i)</enum><text>to the extent such payments in the aggregate for the year do not exceed an amount equal to—</text><subclause id="id01B807DBC08B4590BFC168BB1EBF9BF5"><enum>(I)</enum><text>the limitation applicable under section 402(g) for the year (or, if lesser, the employee's compensation (as defined in section 415(c)(3)) for the year), reduced by</text></subclause><subclause id="id2AF56C196FA84EB5B76D1B33B453C395"><enum>(II)</enum><text>the elective deferrals made by the employee for such year, and</text></subclause></clause><clause id="idB2BB3C2C08C041FE900ACF6E1361184A"><enum>(ii)</enum><text>if the employee certifies annually to the employer making the matching contribution under this paragraph that such payment has been made on such loan.</text></clause><continuation-text continuation-text-level="subparagraph">For purposes of this subparagraph, the term <term>qualified higher education expenses</term> means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, as in effect on the day before the date of the enactment of the Taxpayer Relief Act of 1997) at an eligible educational institution (as defined in section 221(d)(2)).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id09BC62F4683B4C85B768277C3FAD3A88"><enum>(c)</enum><header>Matching contributions for qualified student loan payments</header><text>Subsection (m) of section 401, as amended by this Act, is further amended by redesignating paragraph (14) as paragraph (15), and by inserting after paragraph (13) the following new paragraph:</text><quoted-block style="OLC" act-name="" id="id62502BE33A5646B0BB36A3B4B526EE19"><paragraph id="idD78B4B7BB89F4998A64E17ABA017ECD6"><enum>(14)</enum><header>Matching contributions for qualified student loan payments</header><subparagraph id="id6F32D73C4E664E01B668FCE6C7410192"><enum>(A)</enum><header>In general</header><text>For purposes of paragraph (4)(A)(iii), an employer contribution made to a defined contribution plan on account of a qualified student loan payment shall be treated as a matching contribution for purposes of this title if—</text><clause id="idDE38F1EF661248F2AD19D205B00515FE"><enum>(i)</enum><text>the plan provides matching contributions on account of elective deferrals at the same rate as contributions on account of qualified student loan payments,</text></clause><clause id="idEE5181F1D2FC4763BC7E3FA294FC8149"><enum>(ii)</enum><text>the plan provides matching contributions on account of qualified student loan payments only on behalf of employees otherwise eligible to receive matching contributions on account of elective deferrals,</text></clause><clause id="idAD63A8C5CD9E45FEAC5C5006600281F0"><enum>(iii)</enum><text>under the plan, all employees eligible to receive matching contributions on account of elective deferrals are eligible to receive matching contributions on account of qualified student loan payments, and</text></clause><clause id="idF549BE762D98453285924FE7B190BF1D"><enum>(iv)</enum><text>the plan provides that matching contributions on account of qualified student loan payments vest in the same manner as matching contributions on account of elective deferrals.</text></clause></subparagraph><subparagraph id="id021B7A307BD04619B5845A502ABC55AF"><enum>(B)</enum><header>Treatment for purposes of nondiscrimination rules, etc</header><clause id="id7E28F448451141FCBF5B754390E5102A"><enum>(i)</enum><header>Nondiscrimination rules</header><text>For purposes of subparagraph (A)(iii), subsection (a)(4), and section 410(b), matching contributions described in paragraph (4)(A)(iii) shall not fail to be treated as available to an employee solely because such employee does not have debt incurred under a qualified education loan (as defined in section 221(d)(1)).</text></clause><clause id="id4D0059D39F4940F48E83E7532643B722"><enum>(ii)</enum><header>Student loan payments not treated as plan contribution</header><text>Except as provided in clause (iii), a qualified student loan payment shall not be treated as a contribution to a plan under this title.</text></clause><clause id="idA6026D4C2A0E464EAF6AB0BEC85F55E6"><enum>(iii)</enum><header>Matching contribution rules</header><text>Solely for purposes of meeting the requirements of paragraph (11)(B), (12), or (13) of this subsection, or paragraph (11)(B)(i)(II), (12)(B), (13)(D), or (16)(D) of subsection (k), a plan may treat a qualified student loan payment as an elective deferral or an elective contribution, whichever is applicable.</text></clause><clause id="idB19EDDC11CB741D1A1052B13950E3E72"><enum>(iv)</enum><header>Actual deferral percentage testing</header><text>In determining whether a plan meets the requirements of subsection (k)(3)(A)(ii) for a plan year, the plan may apply the requirements of such subsection separately with respect to all employees who receive matching contributions described in paragraph (4)(A)(iii) for the plan year.</text></clause></subparagraph><subparagraph id="id17F9E76303A344A38FA581E2801CB681"><enum>(C)</enum><header>Employer may rely on employee certification</header><text>The employer may rely on an employee certification of payment under paragraph (4)(D)(ii).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idFDDE2A900C674B92A4CE689EF8BAEF79"><enum>(d)</enum><header>Simple retirement accounts</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(p)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" act-name="" id="id075912BDF48842A99E425C8F57B428DF"><subparagraph id="idD19BAEA79DFA41E3BBDB4813B948BC17"><enum>(F)</enum><header>Matching contributions for qualified student loan payments</header><clause id="id3F078AB0A1724FE5B380E1EF0348BCE2"><enum>(i)</enum><header>In general</header><text>Subject to the rules of clause (iii), an arrangement shall not fail to be treated as meeting the requirements of subparagraph (A)(iii) solely because under the arrangement, solely for purposes of such subparagraph, qualified student loan payments are treated as amounts elected by the employee under subparagraph (A)(i)(I) to the extent such payments do not exceed—</text><subclause id="id39087E79577945699B64B9A7CA6AFD41"><enum>(I)</enum><text>the applicable dollar amount under subparagraph (E) (after application of section 414(v)) for the year (or, if lesser, the employee's compensation (as defined in section 415(c)(3)) for the year), reduced by</text></subclause><subclause id="id9F94DFD6445E414598B4AC4E1131586B"><enum>(II)</enum><text>any other amounts elected by the employee under subparagraph (A)(i)(I) for the year.</text></subclause></clause><clause id="id34733F634A5F496DAE65C26EA47ECDF8"><enum>(ii)</enum><header>Qualified student loan payment</header><text>For purposes of this subparagraph—</text><subclause id="id1A20380127344D7780362C4320E57F55"><enum>(I)</enum><header>In general</header><text>The term <term>qualified student loan payment</term> means a payment made by an employee in repayment of a qualified education loan (as defined in section 221(d)(1)) incurred by the employee to pay qualified higher education expenses, but only if the employee certifies to the employer making the matching contribution that such payment has been made on such a loan.</text></subclause><subclause id="id553ADFBFBB4D476DA53F2D4F6FEE1847"><enum>(II)</enum><header>Qualified higher education expenses</header><text>The term <term>qualified higher education expenses</term> has the same meaning as when used in section 401(m)(4)(D).</text></subclause></clause><clause id="id7B9133F0B84F44E695A6FD18650F2770"><enum>(iii)</enum><header>Applicable rules</header><text>Clause (i) shall apply to an arrangement only if, under the arrangement—</text><subclause id="id4ED1C80BA22942329157808A969CE85C"><enum>(I)</enum><text>matching contributions on account of qualified student loan payments are provided only on behalf of employees otherwise eligible to elect contributions under subparagraph (A)(i)(I), and</text></subclause><subclause id="idF475606236C84F9FBB2EEA4BCBA2AFED"><enum>(II)</enum><text>all employees otherwise eligible to participate in the arrangement are eligible to receive matching contributions on account of qualified student loan payments.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idFA60C1F2BB0845D3A99142BF17A19781"><enum>(e)</enum><header>403<enum-in-header>(b)</enum-in-header> plans</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)(12)</external-xref> is amended by adding at the end the following: <quote>The fact that the employer offers matching contributions on account of qualified student loan payments as described in section 401(m)(14) shall not be taken into account in determining whether the arrangement satisfies the requirements of clause (ii) (and any regulation thereunder).</quote>.</text></subsection><subsection id="id8F235DED48A641B6BDC06D700DF1D064"><enum>(f)</enum><header>457<enum-in-header>(b)</enum-in-header> plans</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/457">section 457</external-xref> is amended by adding at the end the following: <quote>A plan which is established and maintained by an employer which is described in subsection (e)(1)(A) shall not be treated as failing to meet the requirements of this subsection solely because the plan, or another plan maintained by the employer which meets the requirements of section 401(a) or 403(b), provides for matching contributions on account of qualified student loan payments as described in section 401(m)(14).</quote>.</text></subsection><subsection id="id5A6640F616324D1E8E22BE3DEDFECD27"><enum>(g)</enum><header>Regulatory authority</header><text>The Secretary of the Treasury (or such Secretary's delegate) shall prescribe regulations for purposes of implementing the amendments made by this section, including regulations—</text><paragraph id="idAB717B26A4AD4C0D9566EAD47715AC19"><enum>(1)</enum><text>permitting a plan to make matching contributions for qualified student loan payments, as defined in sections 401(m)(4)(D) and 408(p)(2)(F) of the Internal Revenue Code of 1986, as added by this section, at a different frequency than matching contributions are otherwise made under the plan, provided that the frequency is not less than annually;</text></paragraph><paragraph id="id1DE7D741F7424DFAB699EA8522E16DF1"><enum>(2)</enum><text>permitting employers to establish reasonable procedures to claim matching contributions for such qualified student loan payments under the plan, including an annual deadline (not earlier than 3 months after the close of each plan year) by which a claim must be made; and</text></paragraph><paragraph id="idd3972c3df9af405b8d8308426750232e"><enum>(3)</enum><text>promulgating model amendments which plans may adopt to implement matching contributions on such qualified student loan payments for purposes of sections 401(m), 408(p), 403(b), and 457(b) of the Internal Revenue Code of 1986.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id293EB048FDD343B484678E2418153085"><enum>(h)</enum><header>Effective date</header><text>The amendments made by this section shall apply to contributions made for plan years beginning after December 31, 2023. </text></subsection></section><section section-type="subsequent-section" id="id175E66B27784407F8E8CD7F6D82AFC6D"><enum>105.</enum><header>Withdrawals for certain emergency expenses</header><subsection id="id078BBE9E143749CA86B3988623018184"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id35E1E3498EEB4D47B47E57EA077E47F6"><subparagraph id="idC5624E9536E04912B8A4CF60976E1495"><enum>(I)</enum><header>Distributions for certain emergency expenses</header><clause id="idEA330A69F83A4344B649A1F16C9D5179"><enum>(i)</enum><header>In general</header><text>Any emergency personal expense distribution.</text></clause><clause id="idB006D3CEC3DE487482D5BA509EEDC001"><enum>(ii)</enum><header>Annual limitation</header><text>Not more than 1 distribution per calendar year may be treated as an emergency personal expense distribution by any individual.</text></clause><clause id="idABB35853EF1F4FDC8AE495E003208430"><enum>(iii)</enum><header>Dollar limitation</header><text>The amount which may be treated as an emergency personal expense distribution by any individual in any calendar year shall not exceed the lesser of $1,000 or an amount equal to the excess of—</text><subclause id="id581E33283E5A41E2B9C8708445F0EE77"><enum>(I)</enum><text>the individual's total nonforfeitable accrued benefit under the plan (the individual's total interest in the plan in the case of an individual retirement plan), determined as of the date of each such distribution, over</text></subclause><subclause id="idBD28B247A51D42E49E03174420037BC5"><enum>(II)</enum><text>$1,000.</text></subclause></clause><clause id="id2184B62B70B44CE29D42D5DB3667F293"><enum>(iv)</enum><header>Emergency personal expense distribution</header><text>For purposes of this subparagraph, the term <term>emergency personal expense distribution</term> means any distribution from an applicable eligible retirement plan (as defined in subparagraph (H)(vi)(I)) to an individual for purposes of meeting unforeseeable or immediate financial needs relating to necessary personal or family emergency expenses. The administrator of an applicable eligible retirement plan may rely on an employee’s certification that the employee satisfies the conditions of the preceding sentence in determining whether any distribution is an emergency personal expense distribution. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee's certification, and for procedures for addressing cases of employee misrepresentation.</text></clause><clause id="id71EC307F4FB047C3B54658C28892D650"><enum>(v)</enum><header>Treatment of plan distributions</header><text>If a distribution to an individual would (without regard to clause (ii) or (iii)) be an emergency personal expense distribution, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as an emergency personal expense distribution, unless the number or the aggregate amount of such distributions from all plans maintained by the employer (and any member of any controlled group which includes the employer, determined as provided in subparagraph (H)(iv)(II)) to such individual exceeds the limitation determined under clause (ii) or (iii).</text></clause><clause id="id0ADA374B1E4F46DEB46BC90245BFAEB6"><enum>(vi)</enum><header>Amount distributed may be repaid</header><subclause id="id51b8e5e2c2cb4856a9181a69e4d9a948"><enum>(I)</enum><header>In general</header><text>Any individual who receives an emergency personal expense distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be. </text></subclause><subclause id="id1197bae4f25a4a62bf0622f0af9fbf05"><enum>(II)</enum><header>Limitation on contributions to applicable eligible retirement plans other than IRAs</header><text>The aggregate amount of contributions made by an individual under subclause (I) to any applicable eligible retirement plan which is not an individual retirement plan shall not exceed the aggregate amount of emergency personal expense distributions which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.</text></subclause><subclause id="id6ab6d52a386d409eb3bd566025ad6b18"><enum>(III)</enum><header>Treatment of repayments of distributions from applicable eligible retirement plans other than IRAs</header><text>If a contribution is made under subclause (I) with respect to an emergency personal expense distribution from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text></subclause><subclause id="ida8870fe1439041c5a3582c1aac5628a4"><enum>(IV)</enum><header>Treatment of repayments for distributions from IRAs</header><text>If a contribution is made under subclause (I) with respect to an emergency personal expense distribution from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text></subclause></clause><clause id="idF79B84B13A71471E89F01F9384C13149"><enum>(vii)</enum><header>Limitation on subsequent distributions</header><text>If a distribution is treated as an emergency personal expense distribution in any calendar year with respect to a plan of the employee, no amount may be treated as such a distribution during the immediately following 3 calendar years with respect to such plan unless—</text><subclause id="id246659BEFC164448AD675F1F58482E6B"><enum>(I)</enum><text>such previous distribution is fully repaid to such plan pursuant to clause (vi), or</text></subclause><subclause id="id72ECDD7DDB1B4BD0ADFE64AEA7A6EB19"><enum>(II)</enum><text>the aggregate of the elective deferrals and employee contributions to the plan (the total amounts contributed to the plan in the case of an individual retirement plan) subsequent to such previous distribution is at least equal to the amount of such previous distribution which has not been so repaid.</text></subclause></clause><clause id="idCD196AF39E9D4D57B228834BAB7C9179"><enum>(viii)</enum><header>Special rules</header><text>Rules similar to the rules of subclauses (II) and (IV) of subparagraph (H)(vi) shall apply to any emergency personal expense distribution.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="idE5EA43718E25494ABF008C30D8C79672"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after December 31, 2023. </text></subsection></section><section id="IDBC38A509F8EA4133A3CD22B02643511A"><enum>106.</enum><header>Allow additional nonelective contributions to simple plans</header><subsection id="IDEE9987E1F3C94801A61677A4F9903929"><enum>(a)</enum><header>In general</header><paragraph id="ID3C2C55CB59FB44C78DE9E297A41B4233"><enum>(1)</enum><header>Modification to definition</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(p)(2)</external-xref> is amended by striking <quote>and</quote> at the end of clause (iii), by redesignating clause (iv) as clause (v), and by inserting after clause (iii) the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="ID155E0BD84B1D4CE9B3AEFD01D807F81F"><clause id="IDFB4D949A3894463FB3FBE99774609107"><enum>(iv)</enum><text>the employer may make nonelective contributions—</text><subclause id="id7CDBAFFA0A694F42A5B29889C6F6B167"><enum>(I)</enum><text>of a uniform percentage (up to 10 percent) of compensation, and</text></subclause><subclause id="id2B68F6B148304C049C5D1B2F1F530502"><enum>(II)</enum><text>not to exceed $5,000,</text></subclause><continuation-text continuation-text-level="clause">for each employee who is eligible to participate in the arrangement and who has at least $5,000 of compensation from the employer for the year, and</continuation-text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="ID16EB0DF288B74E529D70BECA2DCFBF58"><enum>(2)</enum><header>Limitation</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(p)(2)</external-xref> is amended by adding at the end the following: <quote>The compensation taken into account under clause (iv) for any year shall not exceed the limitation in effect for such year under section 401(a)(17).</quote>.</text></paragraph><paragraph commented="no" id="id043e3836008041c3b06a3cb34e7a8a51"><enum>(3)</enum><header>Overall dollar limit on contributions</header><text>Paragraph (8) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(p)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6D5C39B3373B4FA49AAB66F44644AC6A"><paragraph id="id24b66272eb414b0e95e7bac001770c28"><enum>(8)</enum><header>Coordination with maximum limitation</header><text>In the case of any simple retirement account—</text><subparagraph id="idB68515D6374947D299DB916F408CDFE4"><enum>(A)</enum><text>subsection (a)(1) shall be applied by substituting for <quote>the amount in effect for such taxable year under section 219(b)(1)(A)</quote> the following: <quote>the sum of the dollar amount in effect under subsection (p)(2)(A)(ii), the employer contribution required under subsection (p)(2)(A)(iii) or (p)(2)(B)(i), whichever is applicable, and a contribution which meets the requirement of subsection (p)(2)(A)(iv) with respect to the employee</quote>, and</text></subparagraph><subparagraph id="id1B751453CCE64018A3B0C0645AB795C1"><enum>(B)</enum><text>subsection (b)(2)(B) shall be applied by substituting for <quote>the dollar amount in effect under section 219(b)(1)(A)</quote> the following: <quote>the sum of the dollar amount in effect under subsection (p)(2)(A)(ii), the employer contribution required under subsection (p)(2)(A)(iii) or (p)(2)(B)(i), whichever is applicable, and a contribution which meets the requirement of subsection (p)(2)(A)(iv) with respect to the employee</quote>.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id11D0FBA2DD254CA18C41CBBCA24143F2"><enum>(4)</enum><header>Adjustment for inflation</header><text>Paragraph (2) of section 408(p), as amended by this Act, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6DDF8B3AF4AA4ED59A5F0E6AF01C80E5"><subparagraph commented="no" id="idEB67F590A9704B3BAA2BADF363E61572"><enum>(G)</enum><header>Adjustment for inflation</header><text>In the case of taxable years beginning after December 31, 2024, the $5,000 amount in subparagraph (A)(iv)(II) shall be increased by an amount equal to—</text><clause commented="no" id="id58A3873E5AAE48E1932FCF16C783D0DD"><enum>(i)</enum><text>such amount, multiplied by</text></clause><clause commented="no" id="id7D3538867839441F85B8F0D9B553F5B0"><enum>(ii)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>2023</quote> for <quote>2016</quote> in subparagraph (A)(ii) thereof.</text></clause><continuation-text commented="no" continuation-text-level="subparagraph">If any amount as adjusted under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="ID51F251E0BEC44D2BBC683B679DE3C9C9"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="ID8770F7E9FC8343AC834E8D14C2E89911"><enum>(1)</enum><text>Section 408(p)(2)(A)(v), as redesignated by subsection (a), is amended by striking <quote>or (iii)</quote> and inserting <quote>, (iii), or (iv)</quote>.</text></paragraph><paragraph id="IDC88D03EFF1CB486AA7C850AF2979C26B"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(11)(B)(i)</external-xref> is amended by striking <quote>and</quote> at the end of subclause (II), by redesignating subclause (III) as subclause (IV), and by inserting after subclause (II) the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="IDEE007A00F7B342B0B48F7C1D5EF06973"><subclause id="ID5AAE7F126AC543F68388A30079D47262"><enum>(III)</enum><text>the employer may make nonelective contributions of a uniform percentage (up to 10 percent) of compensation, not to exceed the amount in effect under section 408(p)(2)(A)(iv)(II) in any year, for each employee who is eligible to participate in the arrangement and who has at least $5,000 of compensation from the employer for the year, and</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="ID1E7725F74FE2460A896B912BE5F203B0"><enum>(3)</enum><text>Section 401(k)(11)(B)(i)(IV), as redesignated by paragraph (2), is amended by striking <quote>or (II)</quote> and inserting <quote>, (II), or (III)</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID116709F2470A4632868247A8977B8F6B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023. </text></subsection></section><section id="H44B84EE5DFB247D497C647657B0CA8A6"><enum>107.</enum><header>Small immediate financial incentives for contributing to a plan</header><subsection id="HEFAA0EEF038649ED872B5104206779DA"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(4)</external-xref> is amended by inserting <quote>(other than a de minimis financial incentive provided to employees who elect to have the employer make contributions under the arrangement in lieu of receiving cash)</quote> after <quote>any other benefit</quote>.</text></subsection><subsection id="id7b1b59f85cb54759874209786fb09208"><enum>(b)</enum><header>Section 403<enum-in-header>(b)</enum-in-header> plans</header><text>Subparagraph (A) of section 403(b)(12), as amended by this Act, is further amended by adding at the end the following: <quote>A plan shall not fail to satisfy clause (ii) solely by reason of offering a de minimis financial incentive for employees who elect to have the employer make contributions pursuant to a salary reduction agreement.</quote>.</text></subsection><subsection id="id033ce5794d884c6fb0bc81ba71e8873b"><enum>(c)</enum><header>Exemption from prohibited transaction rules</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/4975">section 4975</external-xref> is amended by striking <quote>or</quote> at the end of paragraph (22)(I), by striking the period at the end of paragraph (23) and inserting <quote>, or</quote>, and by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id305ccc5c617645a48e5f1b59d9c74338"><paragraph id="id27ba2f64986f4484a16025692c8af6e0"><enum>(24)</enum><text>the provision of a de minimis financial incentive described in section 401(k)(4)(A) or 403(b)(12)(A).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HDB0370818B4247BDBC55A6E64D0BA06B"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply with respect to plan years beginning after the date of the enactment of this Act.</text></subsection></section><section id="id79073912afc7491c8ae7d009b1b8af45"><enum>108.</enum><header>Indexing IRA catch-up limit</header><subsection id="idf05567d5a0fc46ca848bfda2c740ab68"><enum>(a)</enum><header>In general</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/219">section 219(b)(5)</external-xref> is amended by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8558F1015109467FB62834BD48AD4238"><clause id="idaaccd4641d9b4e12bb1838f707d84503"><enum>(iii)</enum><header>Indexing of catch-up limitation</header><text>In the case of any taxable year beginning in a calendar year after 2022, the $1,000 amount under subparagraph (B)(ii) shall be increased by an amount equal to—</text><subclause id="id2093cf9506b24fbfa44983cd8c25c61a"><enum>(I)</enum><text>such dollar amount, multiplied by</text></subclause><subclause id="idfaf3c87b95a548ac84499975f3a2ecfc"><enum>(II)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2021</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subclause><continuation-text continuation-text-level="clause">If any amount after adjustment under the preceding sentence is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100.</continuation-text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="idea7cea48fe9d4b45807f6bbe92d9c8c2"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. </text></subsection></section><section id="id649a9469cb9c44d49283d981bd0ddcb8"><enum>109.</enum><header>Higher catch-up limit to apply at age 60, 61, 62, and 63</header><subsection id="ida76356e6a2854002be5a60738befdc90"><enum>(a)</enum><header>In general</header><paragraph id="idae66a3554ce143458fcab4c9e5adc440"><enum>(1)</enum><header>Plans other than simple plans</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414(v)(2)(B)(i)</external-xref> is amended by inserting the following before the period: <quote>($10,000, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)</quote>.</text></paragraph><paragraph id="id1030dc2f11334e98aa8f1107143e3e5b"><enum>(2)</enum><header>Simple plans</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414(v)(2)(B)(ii)</external-xref> is amended by inserting the following before the period: <quote>($5,000, in the case of an eligible participant who would attain age 60 but would not attain age 64 before the close of the taxable year)</quote>.</text></paragraph></subsection><subsection id="id3f253a9aef5e48e6ac2c5ca752924225"><enum>(b)</enum><header>Cost-of-living adjustments</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(v)(2)</external-xref> is amended by adding at the end the following: <quote>In the case of a year beginning after December 31, 2025, the Secretary shall adjust annually the $10,000 amount in subparagraph (B)(i) and the $5,000 amount in subparagraph (B)(ii) for increases in the cost-of-living at the same time and in the same manner as adjustments under the preceding sentence; except that the base period taken into account shall be the calendar quarter beginning July 1, 2024.</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="ide5a669bb058e4f3b9a3a70ae43dcfb95"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2024. </text></subsection></section><section id="H2363283C5DFA4D9E9C63D8773DB8510B"><enum>110.</enum><header>Eliminate the <quote>first day of the month</quote> requirement for governmental section <enum-in-header>457(b)</enum-in-header> plans</header><subsection id="HAF3C0ECC69F6457A86F7B12F4F5D3054"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/457">Section 457(b)(4)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" id="HAC17ED70B1C84D02A028EA8E26497698"><paragraph id="HCD2F1FDAA0C143BF9F803FDC1F7FC71E"><enum>(4)</enum><text>which provides that compensation—</text><subparagraph id="H1D977ECC0CC64474B4A313AB4A80EE03"><enum>(A)</enum><text>in the case of an eligible employer described in subsection (e)(1)(A), will be deferred only if an agreement providing for such deferral has been entered into before the compensation is currently available to the individual, and</text></subparagraph><subparagraph id="HEAB715A773A84630B730856419D28A03"><enum>(B)</enum><text>in any other case, will be deferred for any calendar month only if an agreement providing for such deferral has been entered into before the beginning of such month,</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HF503A18C3F52430A8887B297A94EE064"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. </text></subsection></section><section id="IDCE42C78727F549EDBB4C17AA08B50D8F"><enum>111.</enum><header>Tax treatment of certain nontrade or business SEP contributions</header><subsection id="ID343F8E036B384CC689BBF289FB3FF622"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/4972">section 4972(c)(6)</external-xref> is amended—</text><paragraph id="ID24BFEDDCB3AD4C54B4E7994273EFC7B0"><enum>(1)</enum><text>by striking <quote>408(p)) or</quote> and inserting <quote>408(p)),</quote>; and</text></paragraph><paragraph id="IDEBB8AD7468F14325892320BE556A99B0"><enum>(2)</enum><text>by inserting <quote>, or a simplified employee pension (within the meaning of section 408(k))</quote> after <quote>401(k)(11))</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDD58267ADE4F544A5B72467CEB70FC95A"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. </text></subsection></section><section id="id81b82005ae664db0a93a135789fa9b70"><enum>112.</enum><header>Elimination of additional tax on corrective distributions of excess contributions</header><subsection id="idd71b4f4fef5040858d510dd15e6d3782"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(2)</external-xref> is amended—</text><paragraph id="idad8930afb6364bed8fa4b2b3e3e45c20"><enum>(1)</enum><text>by striking <quote>or</quote> at the end of clause (vii);</text></paragraph><paragraph id="id5ce0c117cb3744909054cfc384cf1cea"><enum>(2)</enum><text>by striking the period at the end of clause (viii) and inserting <quote>, or</quote>; and</text></paragraph><paragraph id="id9ec1c3ad9a4c46e4a31796e565dd6350"><enum>(3)</enum><text>by inserting after clause (viii) the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4f0df0710f4345cc8df7358ea21cdb3b"><clause id="idc2d8ed73f5094ea988ff226ab2c49392"><enum>(ix)</enum><text>attributable to withdrawal of net income attributable to a contribution which is distributed pursuant to section 408(d)(4).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id99913a6b1f7e40a7bf9a521c464798f5"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to any determination of, or affecting, liability for taxes, interest, or penalties which is made on or after the date of the enactment of this Act, without regard to whether the act (or failure to act) upon which the determination is based occurred before such date of enactment. Notwithstanding the preceding sentence, nothing in the amendments made by this section shall be construed to create an inference with respect to the law in effect prior to the effective date of such amendments. </text></subsection></section><section commented="no" id="H357D2F06FD1940AA8B5AF1A49E8631E4"><enum>113.</enum><header>Employer may rely on employee certifying that deemed hardship distribution conditions are met</header><subsection commented="no" id="HBBD21DE3AAA44352A4423A24616E391D"><enum>(a)</enum><header>Cash or deferred arrangements</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(14)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H6D91EFDA2BA5489092C1278B060A3E30"><subparagraph commented="no" id="H2B7D13D0E6804A229D3B51B24356C71C"><enum>(C)</enum><header>Employee certification</header><text display-inline="yes-display-inline">In determining whether a distribution is upon the hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is—</text><clause commented="no" id="id8799689795934135BDA1F82614B05C7E"><enum>(i)</enum><text display-inline="yes-display-inline">on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need, and </text></clause><clause commented="no" id="id9E4C66E186D9487D9D1644402E82C7AA"><enum>(ii)</enum><text display-inline="yes-display-inline">not in excess of the amount required to satisfy such financial need, and</text></clause><continuation-text continuation-text-level="subparagraph">that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee's certification, and for procedures for addressing cases of employee misrepresentation.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HA1A6AFA3A137457188A8DD6F75886080"><enum>(b)</enum><header><enum-in-header>403(b)</enum-in-header> plans</header><paragraph commented="no" id="H17F652A2D9414C3181BE782FFA5B55EB"><enum>(1)</enum><header>Custodial accounts</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(b)(7)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA4A174C44CFB4F2EB7424E0B4480FD99"><subparagraph commented="no" id="idEE6CB644927640DA9880D50E3C1ED494"><enum>(D)</enum><header>Employee certification</header><text display-inline="yes-display-inline">In determining whether a distribution is upon the financial hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is—</text><clause commented="no" id="id250D4A3DCE054BAEAD75B1D0F7EEDCD7"><enum>(i)</enum><text display-inline="yes-display-inline">on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need, and </text></clause><clause commented="no" id="idD9492060A2AA4C16B67330C2FFBCB9B8"><enum>(ii)</enum><text display-inline="yes-display-inline">not in excess of the amount required to satisfy such financial need, and</text></clause><continuation-text continuation-text-level="subparagraph">that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee's certification, and for procedures for addressing cases of employee misrepresentation.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="H45C77A394CAF42CF9C7C0C4EB656B90A"><enum>(2)</enum><header>Annuity contracts</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(b)(11)</external-xref> is amended by adding at the end the following: <quote>In determining whether a distribution is upon hardship of an employee, the administrator of the plan may rely on a written certification by the employee that the distribution is on account of a financial need of a type which is deemed in regulations prescribed by the Secretary to be an immediate and heavy financial need and is not in excess of the amount required to satisfy such financial need, and that the employee has no alternative means reasonably available to satisfy such financial need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the employee's certification, and for procedures for addressing cases of employee misrepresentation.</quote>. </text></paragraph></subsection><subsection commented="no" id="H99F0D9BE0B704ABE9B304CC266A13398"><enum>(c)</enum><header><enum-in-header>457(b)</enum-in-header> plan</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/457">Section 457(d)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA8585AFE9904461DBF13A63AA475E5C6"><paragraph commented="no" id="id8BCB1D7B719C4832A7FA6070ED3A4021"><enum>(4)</enum><header>Participant certification</header><text display-inline="yes-display-inline">In determining whether a distribution to a participant is made when the participant is faced with an unforeseeable emergency, the administrator of a plan maintained by an eligible employer described in subsection (e)(1)(A) may rely on a written certification by the participant that the distribution is—</text><subparagraph commented="no" id="id5B2F441F1F8C4AF6BA85DB2C112D4402"><enum>(A)</enum><text display-inline="yes-display-inline">made when the participant is faced with an unforeseeable emergency of a type which is described in regulations prescribed by the Secretary as an unforeseeable emergency, and </text></subparagraph><subparagraph commented="no" id="idAAAA67852EFF4A468FCBAE90C6EECF3E"><enum>(B)</enum><text display-inline="yes-display-inline">not in excess of the amount required to satisfy the emergency need, and</text></subparagraph><continuation-text continuation-text-level="paragraph">that the participant has no alternative means reasonably available to satisfy such emergency need. The Secretary may provide by regulations for exceptions to the rule of the preceding sentence in cases where the plan administrator has actual knowledge to the contrary of the participant's certification, and for procedures for addressing cases of participant misrepresentation.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H6D689850C8AE4C27B4A371E107472770"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. </text></subsection></section><section id="HF1960D5642B0434F94DECACB71E6C617"><enum>114.</enum><header>Penalty-free withdrawals from retirement plans for individuals in case of domestic abuse</header><subsection id="H41F4889AEA564644A1B3E9473E8D598C"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 72(t), as amended by this Act, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H4A154D8EDEB349BFA5F989A86D52C99D"><subparagraph id="HF1A41843BB5F4A3D86B56D48A7A2B25B"><enum>(J)</enum><header>Distributions from retirement plan in case of domestic abuse</header><clause id="H84822F2794174749ADA94F12B4861716"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Any eligible distribution to a domestic abuse victim.</text></clause><clause id="H342EF5B7E73849958513A50655214B03"><enum>(ii)</enum><header>Limitation</header><text>The aggregate amount which may be treated as an eligible distribution to a domestic abuse victim by any individual shall not exceed an amount equal to the lesser of—</text><subclause id="HEF6A53969C0741099D18C0DCA8E95D1F"><enum>(I)</enum><text>$10,000, or</text></subclause><subclause id="HAD50BD2ED35241168003615CBA48F98B"><enum>(II)</enum><text>50 percent of the present value of the nonforfeitable accrued benefit of the employee under the plan.</text></subclause></clause><clause id="HEFC9B8E12CDA4F52AD287C70652011BC"><enum>(iii)</enum><header>Eligible distribution to a domestic abuse victim</header><text display-inline="yes-display-inline">For purposes of this subparagraph—</text><subclause id="H5FEBF914D5AF4B75A73EB6DEC2DD14B1"><enum>(I)</enum><header>In general</header><text>A distribution shall be treated as an eligible distribution to a domestic abuse victim if such distribution is from an applicable eligible retirement plan and is made to an individual during the 1-year period beginning on any date on which the individual is a victim of domestic abuse by a spouse or domestic partner.</text></subclause><subclause id="HE81D630DCE044240ABBB45FA0DB464B1"><enum>(II)</enum><header>Domestic abuse</header><text display-inline="yes-display-inline">The term <term>domestic abuse</term> means physical, psychological, sexual, emotional, or economic abuse, including efforts to control, isolate, humiliate, or intimidate the victim, or to undermine the victim’s ability to reason independently, including by means of abuse of the victim’s child or another family member living in the household.</text></subclause></clause><clause id="H55109F8FAA7D4062AE3D156B9ED9BEFC"><enum>(iv)</enum><header>Treatment of plan distributions</header><text display-inline="yes-display-inline">If a distribution to an individual would (without regard to clause (ii)) be an eligible distribution to a domestic abuse victim, a plan shall not be treated as failing to meet any requirement of this title merely because the plan treats the distribution as an eligible distribution to a domestic abuse victim, 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, determined as provided in subparagraph (H)(iv)(II)) to such individual exceeds the limitation under clause (ii).</text></clause><clause id="H9371AEFE23834A8AAE9FFED3E385E704"><enum>(v)</enum><header>Amount distributed may be repaid</header><subclause id="HA4B9AB2B4717428391F4995C81EC6DD8"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">Any individual who receives a distribution described in clause (i) may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an applicable eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.</text></subclause><subclause id="H70EC8413BD4B4088A6384255FF93B74E"><enum>(II)</enum><header>Limitation on contributions to applicable eligible retirement plans other than <enum-in-header>IRAs</enum-in-header></header><text display-inline="yes-display-inline">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 eligible distributions to a domestic abuse victim which are made from such plan to such individual. Subclause (I) shall not apply to contributions to any applicable eligible retirement plan which is not an individual retirement plan unless the individual is eligible to make contributions (other than those described in subclause (I)) to such applicable eligible retirement plan.</text></subclause><subclause id="H26BC76213E52433B98B21E9DB7B29776"><enum>(III)</enum><header>Treatment of repayments of distributions from applicable eligible retirement plans other than IRAs</header><text display-inline="yes-display-inline">If a contribution is made under subclause (I) with respect to an eligible distribution to a domestic abuse victim from an applicable eligible retirement plan other than an individual retirement plan, then the taxpayer shall, to the extent of the amount of the contribution, be treated as having received such distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text></subclause><subclause id="H02A3672E6C7B4E5D907C59838ADFF25F"><enum>(IV)</enum><header>Treatment of repayments for distributions from IRAs</header><text display-inline="yes-display-inline">If a contribution is made under subclause (I) with respect to an eligible distribution to a domestic abuse victim from an individual retirement plan, then, to the extent of the amount of the contribution, such distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the applicable eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text></subclause></clause><clause id="H86502F79BAAE4D5A94094DEDA1324898"><enum>(vi)</enum><header>Definition and special rules</header><text display-inline="yes-display-inline">For purposes of this subparagraph:</text><subclause id="H9CC1F2F51AB54FEE865554EBA40BC575"><enum>(I)</enum><header>Applicable eligible retirement plan</header><text display-inline="yes-display-inline">The term <term>applicable eligible retirement plan</term> means an eligible retirement plan (as defined in section 402(c)(8)(B)) other than a defined benefit plan or a plan to which sections 401(a)(11) and 417 apply.</text></subclause><subclause id="H86EA7C4E98F948F99E4DF04A7C579F28"><enum>(II)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text display-inline="yes-display-inline">For purposes of sections 401(a)(31), 402(f), and 3405, an eligible distribution to a domestic abuse victim shall not be treated as an eligible rollover distribution.</text></subclause><subclause id="HD1834A2A22844E2BB09C2B77CBBC67C2"><enum>(III)</enum><header>Distributions treated as meeting plan distribution requirements; self-certification</header><text display-inline="yes-display-inline">Any distribution which the employee or participant certifies as being an eligible distribution to a domestic abuse victim shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H89A6A71E40F94C719D1A2DB411BAAE1A"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after the date of the enactment of this Act.</text></subsection></section><section id="H95D89B18634A4FB689E0CFA883DC9278"><enum>115.</enum><header>Amendments to increase benefit accruals under plan for previous plan year allowed until employer tax return due date</header><subsection id="H7F4D7B893B174F599F887C83FF719BB1"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(b)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HDE70EE608DAC450C85CC13DFDE338B95"><paragraph id="H5ACF217D2A504FC4AD2C9561939F796E"><enum>(3)</enum><header>Retroactive plan amendments that increase benefit accruals</header><text display-inline="yes-display-inline">If—</text><subparagraph id="HE089C7934E824964B7CEEB2DAF0A9F6F"><enum>(A)</enum><text>an employer amends a stock bonus, pension, profit-sharing, or annuity plan to increase benefits accrued under the plan effective as of any date during the immediately preceding plan year (other than increasing the amount of matching contributions (as defined in subsection (m)(4)(A))),</text></subparagraph><subparagraph id="H86C2DD3AE3644EC8BFAF22E54A58B8C1"><enum>(B)</enum><text>such amendment would not otherwise cause the plan to fail to meet any of the requirements of this subchapter, and</text></subparagraph><subparagraph id="H9FCA6C5AB03E471692C7B7C6A136C173"><enum>(C)</enum><text>such amendment is adopted before the time prescribed by law for filing the return of the employer for the taxable year (including extensions thereof) which includes the date described in subparagraph (A), </text></subparagraph><continuation-text continuation-text-level="paragraph">the employer may elect to treat such amendment as having been adopted as of the last day of the plan year in which the amendment is effective.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H74DA8F9DCA1D4FD09041D9F6FA754FB5"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. </text></subsection></section><section commented="no" id="HB5E0DB41B31D432E8786429D7222C12B"><enum>116.</enum><header>Retroactive first year elective deferrals for sole proprietors</header><subsection commented="no" id="H5035264A5A364D78B7BA3D61E09C91A9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(b)(2)</external-xref> is amended by adding at the end the following: <quote>In the case of an individual who owns the entire interest in an unincorporated trade or business, and who is the only employee of such trade or business, any elective deferrals (as defined in section 402(g)(3)) under a qualified cash or deferred arrangement to which the preceding sentence applies, which are made by such individual before the time for filing the return of such individual for the taxable year (determined without regard to any extensions) ending after or with the end of the plan’s first plan year, shall be treated as having been made before the end of such first plan year.</quote>. </text></subsection><subsection commented="no" display-inline="no-display-inline" id="H739003C3BCCF4088BE17A5870AD272F9"><enum>(b)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to plan years beginning after the date of the enactment of this Act. </text></subsection></section><section id="id29CBA4EA587F4AA89C7AAC01D0153EAB"><enum>117.</enum><header>Treasury guidance on rollovers</header><text display-inline="no-display-inline">Not later than January 1, 2025, the Secretary of the Treasury or the Secretary’s delegate shall, to simplify, standardize, and facilitate the completion of direct rollovers from retirement plans and trustee-to-trustee transfers from individual retirement plans (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/7701">section 7701(a)(37)</external-xref> of the Internal Revenue Code of 1986), develop and release—</text><paragraph id="iddb84154e36f243088fb1ce2a0c498317"><enum>(1)</enum><text>sample forms for direct rollovers of eligible rollover distributions from a retirement plan to another retirement plan or to an individual retirement plan which—</text><subparagraph id="idab938c92e7da4e23b4458dc4eeb7ca1e"><enum>(A)</enum><text>are written in a manner calculated to be understood by the average person, and</text></subparagraph><subparagraph id="id5a1778fee6b34f51ab27e4dea7fc68dd"><enum>(B)</enum><text>can be used by both distributing retirement plans and receiving retirement plans and individual retirement plans, and</text></subparagraph></paragraph><paragraph id="idc990e8dc0d4440bd9e3199e045d7dd90"><enum>(2)</enum><text>sample forms for trustee-to-trustee transfers of amounts from an individual retirement plan to another individual retirement plan or to a retirement plan which—</text><subparagraph id="idc295fa2d699e4622b24dbb6a94e19830"><enum>(A)</enum><text>are written in a manner calculated to be understood by the average person, and</text></subparagraph><subparagraph id="ida89a09e46c3c4fdcab7eed66ab7b436e"><enum>(B)</enum><text>can be used by both transferring individual retirement plans and receiving retirement plans and individual retirement plans.</text></subparagraph></paragraph></section><section id="id4d74b0efdbea4bbca2fde07de51790e3"><enum>118.</enum><header>Exemption for automatic portability transactions</header><subsection id="idAD9C17813A604A88B3596924754FBD5D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 4975(d), as amended by this Act, is further amended—</text><paragraph id="idB7E2A95ADF4F46A2B13875C3BF8CB207"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>or</quote> at the end of paragraph (23),</text></paragraph><paragraph id="idD12006985D804938B4B08F51F16E81CC"><enum>(2)</enum><text>by striking the period at the end of paragraph (24) and inserting <quote>, or</quote>, and</text></paragraph><paragraph id="id2455B0F0DBE445B2A7567F2586B5AB12"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFE4C0896F0D6495CBF3DFEAC94C0A533"><paragraph id="id8967DC01195D49F0A6FE6053A95F6B23"><enum>(25)</enum><text display-inline="yes-display-inline">the receipt of fees and compensation by the automatic portability provider in connection with an automatic portability transaction.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idE0D3A47E3F964F5EA5B7C8DF913B052C"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4975">Section 4975(f)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idFFF6D3FB95AE4F4F87E4892E5D8B1B66"><paragraph id="id8E7F8A14D52B45C8BD9F058B34DA33E7"><enum>(12)</enum><header>Rules relating to automatic portability transactions</header><subparagraph id="id28D9AEE67E0D499D8DD5FC1762224F3B"><enum>(A)</enum><header>In general</header><text>For purposes of subsection (d)(25)—</text><clause id="id8cafd6489f6c43129a460e70f89a0ee4"><enum>(i)</enum><header>Automatic portability transaction</header><text>An automatic portability transaction is a transfer of assets made—</text><subclause id="idff0f5a5201654aa09235d0d80f5e2694"><enum>(I)</enum><text>from an individual retirement plan which is established on behalf of an individual and to which amounts were transferred under section 401(a)(31)(B)(i),</text></subclause><subclause id="id99b78c8945a548cc97cff313171fe472"><enum>(II)</enum><text>to an employer-sponsored retirement plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B) (other than a defined benefit plan) in which such individual is an active participant, and</text></subclause><subclause id="id095c513e04dd472cb637e91d6086a167"><enum>(III)</enum><text>after such individual has been given advance notice of the transfer and has not affirmatively opted out of such transfer.</text></subclause></clause><clause id="idb31fffd39f5741849ad67088ed67a316"><enum>(ii)</enum><header>Automatic portability provider</header><text>An automatic portability provider is a person that executes transfers described in clause (i).</text></clause></subparagraph><subparagraph id="id73c4b167154c458d9c4c737e9dec237c"><enum>(B)</enum><header>Conditions for automatic portability transactions</header><text>Subsection (d)(25) shall not apply to an automatic portability transaction unless the following requirements are satisfied:</text><clause id="id6d599b51077c4969a3e2ccfd5d4dd9a6"><enum>(i)</enum><header>Acknowledgment of fiduciary status</header><text>An automatic portability provider shall acknowledge in writing, at such time and format as specified by the Secretary, that the provider is a fiduciary with respect to the individual retirement plan described in subparagraph (A)(i)(I).</text></clause><clause id="id33afbd0339c8489f9f94a4251d2ab078"><enum>(ii)</enum><header>Fees</header><text>The fees and compensation received by the automatic portability provider in connection with the automatic portability transaction (including any increase in such fees or compensation) shall not exceed reasonable compensation and must be fully disclosed to and approved in writing in advance of the transaction by a plan fiduciary of the plan described in subparagraph (A)(i)(II) which is independent of the automatic portability provider.</text></clause><clause id="id2064f6abcac04e0eae2ab187e7963759"><enum>(iii)</enum><header>Data usage</header><text>The automatic portability provider shall not—</text><subclause id="id680C6F62C0A1413996A006A1022E7C58"><enum>(I)</enum><text>market or sell data relating to the individual retirement plan described in subparagraph (A)(i)(I), or</text></subclause><subclause id="id15028E95190D447D968263C098A84075"><enum>(II)</enum><text>use such data for any purpose other than the administration of automatic portability transactions without the express consent of a plan fiduciary which is independent of the automatic portability provider after full disclosure by such provider of how such data will be used.</text></subclause></clause><clause id="id71dda3624c3a446d961e51e46f700e3c"><enum>(iv)</enum><header>Open participation</header><text>The automatic portability provider shall offer automatic portability transactions on the same terms to any plan described in subparagraph (A)(i)(II) regardless of whether the provider provides other services for such plan.</text></clause><clause id="id8876a33dc0f34595a3354b9800a99b85"><enum>(v)</enum><header>Pre-transaction notice</header><text>At least 30 days in advance of an automatic portability transaction, the automatic portability provider shall provide notice to the individual on whose behalf the individual retirement plan described in subparagraph (A)(i)(I) is established which includes—</text><subclause id="id6bb814786986481aa468ffb2f3d3e124"><enum>(I)</enum><text>a description of the automatic portability transaction and the fees which will be charged in connection with the transaction,</text></subclause><subclause id="idf877082263d945ac8fc09f270255c92f"><enum>(II)</enum><text>a description of the individual’s right to affirmatively elect not to participate in the transaction, the procedures for such an election, and a telephone number at which the individual can contact the automatic portability provider, and</text></subclause><subclause id="idf9f483878c76421f8b0e5c02188b2059"><enum>(III)</enum><text>such other disclosures as the Secretary may require by regulation.</text></subclause></clause><clause id="id0a7f611019ab43efbb673de8046b039c"><enum>(vi)</enum><header>Post-transaction notice</header><text>Not later than 3 business days after an automatic portability transaction, the automatic portability provider shall provide notice to the individual on whose behalf the individual retirement plan described in subparagraph (A)(i)(I) is established of—</text><subclause id="id1a2d7078f1b04e749f062070a84020fd"><enum>(I)</enum><text>the actions taken by the automatic portability provider with respect to the individual’s account,</text></subclause><subclause id="id02a2c14848a44e168bb7456d64a6dcc1"><enum>(II)</enum><text>all relevant information regarding the location and amount of any transferred assets,</text></subclause><subclause id="idb07d597a2731465f82bc5f4aba76f2a2"><enum>(III)</enum><text>a statement of fees charged against the account by the automatic portability provider or its affiliates in connection with the transfer,</text></subclause><subclause id="id25ed861182fb4021b0700c21b570d268"><enum>(IV)</enum><text>a telephone number at which the individual can contact the automatic portability provider, and</text></subclause><subclause id="id3cf75c364f624e34996575a5dc218c17"><enum>(V)</enum><text>such other disclosures as the Secretary may require by regulation.</text></subclause></clause><clause id="idd74fb3c6cd404c9db205f4821e0e2bb9"><enum>(vii)</enum><header>Notice requirements</header><text>The notices required under clauses (v) and (vi) shall be written in a manner calculated to be understood by the average intended recipient and shall not include materially misleading statements.</text></clause><clause id="id917416e182bb4eeda29ae1945cc5068c"><enum>(viii)</enum><header>Timeliness of execution</header><text>After liquidating the assets of an individual retirement plan described in subparagraph (A)(i)(I) to cash, an automatic portability provider shall transfer the account balance of such plan as soon as practicable to the plan described in subparagraph (A)(i)(II).</text></clause><clause id="id24ad25b7b4544fa6a962d70b0bf7de14"><enum>(ix)</enum><header>Record retention and audits</header><subclause id="id8E268AB10F474186840D71401FF4FFC6"><enum>(I)</enum><header>In general</header><text>An automatic portability provider shall, for 6 years, maintain the records sufficient to demonstrate the terms of this subparagraph have been met.</text></subclause><subclause id="id33708DC8C32945BE9FD9DF08A9DC780E"><enum>(II)</enum><header>Audits</header><text>An automatic portability provider shall conduct an annual audit, in accordance with regulations promulgated by the Secretary, of automatic portability transactions occurring during the calendar year to demonstrate compliance with this subparagraph, and shall submit such audit annually to the Secretary, in such form and manner as specified by the Secretary.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id485caed4326b4fae8d01b4bd6c775145"><enum>(c)</enum><header>Regulatory authority</header><text>Not later than July 1, 2023, the Secretary of the Treasury (or such Secretary's delegate) shall issue such regulations as may be necessary to carry out the purposes of the amendments made by this section, including regulations which—</text><paragraph id="idF7A10D783ACE4306A29DEEF3849ADD1A"><enum>(1)</enum><text>require an automatic portability provider to provide a notice to individuals on whose behalf the individual retirement plan described in paragraph (12)(A)(i)(I) of <external-xref legal-doc="usc" parsable-cite="usc/26/4975">section 4975(f)</external-xref> of the Internal Revenue Code of 1986, as added by this section, is established in advance of the notices specified in paragraph (12)(B)(v) of such section, as so added, </text></paragraph><paragraph id="idDFAF7F875BD6481D8A2977CE6DA87BAE"><enum>(2)</enum><text>restrict the receipt of third party compensation (other than a direct fee by an employer sponsoring a plan which is in lieu of a fee imposed on an individual retirement plan owner) by an automatic portability provider in connection with an automatic portability transaction,</text></paragraph><paragraph id="id8B467CDFB41A42A2B0EF83F5564474FA"><enum>(3)</enum><text>prohibit exculpatory provisions in an automatic portability provider’s contracts or communications with individuals disclaiming or limiting its liability in the event that an automatic portability transaction results in an improper transfer,</text></paragraph><paragraph id="id2664D9CA4D964EC6A066F7C65A3A9AF1"><enum>(4)</enum><text>require an automatic portability provider to take actions necessary to reasonably ensure that participant and beneficiary data is current and accurate, and</text></paragraph><paragraph id="idF4D8F991444248E5AAF1954564374992"><enum>(5)</enum><text>ensure that the appropriate participants and beneficiaries, in fact, receive all the required notices and disclosures until the assets are transferred to a new retirement plan account.</text></paragraph><continuation-text continuation-text-level="subsection">Any term used in this subsection which is used in paragraph (12) of section 4975(f) of such Code, as added by this section, has the same meaning as when used in such paragraph.</continuation-text></subsection><subsection commented="no" display-inline="no-display-inline" id="id5FD585E2C49B422D9EF0670D4AD9F3DD"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transactions occurring after December 31, 2023.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id967E34A7C83C46FBBAED723807C47124"><enum>119.</enum><header>Application of section 415 limit for certain employees of rural electric cooperatives</header><subsection commented="no" display-inline="no-display-inline" id="idE382830A9C9C4B65AF1584064E639EFF"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/415">Section 415(b)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9F120841C4F34B2198FB19077A567AD2"><paragraph commented="no" display-inline="no-display-inline" id="idCF6AD8343CD542D6B4387F3BD62EC068"><enum>(12)</enum><header>Special rule for certain employees of rural electric cooperatives</header><subparagraph commented="no" display-inline="no-display-inline" id="id20468617BA614919B10E75FE619754C6"><enum>(A)</enum><header>In general</header><text>Subparagraph (B) of paragraph (1) shall not apply to a participant in an eligible rural electric cooperative plan, except in the case of a participant who was a highly compensated employee (as defined in section 414(q)) of the employer maintaining such plan for the earlier of—</text><clause commented="no" display-inline="no-display-inline" id="id81A1473D785A45458F5E88DB32FC0906"><enum>(i)</enum><text>the plan year in which the participant terminated employment with such employer, or</text></clause><clause commented="no" display-inline="no-display-inline" id="id81E42BEEC7D54C048677D4CC632E8269"><enum>(ii)</enum><text>the plan year in which distributions commence under the plan with respect to the participant, or</text></clause><continuation-text continuation-text-level="subparagraph">for any of the 5 plan years immediately preceding such earlier plan year.</continuation-text></subparagraph><subparagraph id="id2C207541744A484A830A85DF7C8C4424"><enum>(B)</enum><header>Eligible rural electric cooperative plan</header><text>For purposes of this paragraph—</text><clause id="id61F13C68FF304591B3342E6FD1DA67F3"><enum>(i)</enum><header>In general</header><text>The term <term>eligible rural electric cooperative plan</term> means a plan maintained by more than 1 employer, if at least 85 percent of the employers maintaining the plan are rural cooperatives described in clause (i) or (ii) of section 401(k)(7)(B) or are a national association of such a rural cooperative.</text></clause><clause id="id592887AD4D004BE7864CF20305EBAE29"><enum>(ii)</enum><header>Election</header><text>An employer maintaining an eligible rural cooperative plan may elect not to have subparagraph (A) apply.</text></clause></subparagraph><subparagraph id="id498974A544F4488A9050B31697A46877"><enum>(C)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations and other guidance as are necessary to limit the application of subparagraph (A) such that it does not result in increased benefits for highly compensated employees.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id0BE4BF397CF149D999F2C134D656A43F"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to limitation years ending after the date of the enactment of this Act.</text></subsection></section><section commented="no" id="id979be9d76d4c42fb978ec947bd0d5598"><enum>120.</enum><header>Insurance-dedicated exchange-traded funds</header><subsection commented="no" id="idccf7b139c826416e914c00bd783c9ad1"><enum>(a)</enum><header>In general</header><text>Not later than the date which is 7 years after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall amend the regulation issued by the Department of the Treasury relating to <quote>Income Tax; Diversification Requirements for Variable Annuity, Endowment, and Life Insurance Contracts</quote>, 54 Fed. Reg. 8728 (March 2, 1989), and make any necessary corresponding amendments to other regulations, in order to facilitate the use of exchange-traded funds as investment options under variable contracts within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/817">section 817(d)</external-xref> of the Internal Revenue Code of 1986, in accordance with subsections (b) and (c) of this section.</text></subsection><subsection commented="no" id="id6d6f6d21ee9f49838e68134ab0e87ee7"><enum>(b)</enum><header>Designate certain authorized participants and market makers as eligible investors</header><text>The Secretary of the Treasury (or the Secretary's delegate) shall amend Treas. Reg. section 1.817–5(f)(3) to provide that satisfaction of the requirements in Treas. Reg. section 1.817–5(f)(2)(i) with respect to an exchange-traded fund shall not be prevented by reason of beneficial interests in such a fund being held by 1 or more authorized participants or market makers.</text></subsection><subsection commented="no" id="id617cd44010db4ed2a6fbda38cdc53ead"><enum>(c)</enum><header>Define relevant terms</header><text>In amending Treas. Reg. section 1.817–5(f)(3) in accordance with subsection (b), the Secretary of the Treasury (or the Secretary's delegate) shall provide definitions consistent with the following:</text><paragraph commented="no" id="id3741b922f13d4bc380b931f739bff1af"><enum>(1)</enum><header>Exchange-traded fund</header><text>The term <term>exchange-traded fund</term> means a regulated investment company, partnership, or trust—</text><subparagraph commented="no" id="idcc9f2308b25e4757a5cb4023c89de876"><enum>(A)</enum><text>that is registered with the Securities and Exchange Commission as an open-end investment company or a unit investment trust;</text></subparagraph><subparagraph commented="no" id="id2a3b6169ad704febad6500f98e6895c2"><enum>(B)</enum><text>the shares of which can be purchased or redeemed directly from the fund only by an authorized participant; and</text></subparagraph><subparagraph commented="no" id="id1c7e1ef97a5849fdbeda2407e7cc9f72"><enum>(C)</enum><text>the shares of which are traded throughout the day on a national stock exchange at market prices that may or may not be the same as the net asset value of the shares.</text></subparagraph></paragraph><paragraph commented="no" id="id45cdaec63a394b04bc03ba15d80a9375"><enum>(2)</enum><header>Authorized participant</header><text>The term <term>authorized participant</term> means a financial institution that is a member or participant of a clearing agency registered under section 17A(b) of the Securities Exchange Act of 1934 that enters into a contractual relationship with an exchange-traded fund pursuant to which the financial institution is permitted to purchase and redeem shares directly from the fund and to sell such shares to third parties, but only if the contractual arrangement or applicable law precludes the financial institution from—</text><subparagraph commented="no" id="idf0a682f65ac5403398e5592e86684a09"><enum>(A)</enum><text>purchasing the shares for its own investment purposes rather than for the exclusive purpose of creating and redeeming such shares on behalf of third parties; and</text></subparagraph><subparagraph commented="no" id="id6e61e31bd2184e8d98fbb3b64652769b"><enum>(B)</enum><text>selling the shares to third parties who are not market makers or otherwise described in Treas. Reg. section 1.817–5(f) (1) and (3).</text></subparagraph></paragraph><paragraph commented="no" id="idca4a1932c62a47b6b61889cbf9055910"><enum>(3)</enum><header>Market maker</header><text>The term <term>market maker</term> means a financial institution that is a registered broker or dealer under section 15(b) of the Securities Exchange Act of 1934 that maintains liquidity for an exchange-traded fund on a national stock exchange by being always ready to buy and sell shares of such fund on the market, but only if the financial institution is contractually or legally precluded from selling or buying such shares to or from persons who are not authorized participants or otherwise described in Treas. Reg. section 1.817–5(f) (2) and (3).</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0ac2222d1254499a8a20010ee79c94d5"><enum>(d)</enum><header>Effective date</header><text>This section shall apply to segregated asset account investments made on or after the date which is 7 years after the date of the enactment of this Act.</text></subsection></section><section commented="no" section-type="subsequent-section" id="id29CD3CF431454002AA276C315E5E0DBC"><enum>121.</enum><header>Modification of age requirement for qualified ABLE programs</header><subsection commented="no" id="id150DD8DC91A84DA894EF34503386B7E8"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/529A">Section 529A(e)</external-xref> is amended by striking <quote>age 26</quote> each place it appears in paragraphs (1)(A) and (2)(A)(i)(II) and inserting <quote>age 46</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id79066C7816234EAAAA47ED9B7BB2B5F3"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2025. </text></subsection></section><section section-type="subsequent-section" id="id37BD4C26AF784CB2A6D160925DECBF65"><enum>122.</enum><header>Assist savers in recovering unclaimed savings bonds</header><text display-inline="no-display-inline">Section 3105 of title 31, United States Code, is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id0B8F294AC00A437AA4080876679AB109"><subsection id="id985C58C9370A4526AAE1ABC9D79753C3"><enum>(f)</enum><paragraph commented="no" display-inline="yes-display-inline" id="id648CFFBD4AFB4BF7BC8CBB6FC34B9618"><enum>(1)</enum><text>The Secretary shall provide each State, in digital or other electronic form (including digital images), with all information concerning any applicable savings bond which is registered to an owner with a last known address that is within such State, including the serial number of the bond, the name and last known address of such owner, and all records of any transactions involving such bond.</text></paragraph><paragraph indent="up1" id="id6D416215FC24449D9D08EE099109904E"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id1B177EB716CD4F2A89960A8A0732DAA0"><enum>(A)</enum><text>The Secretary shall prescribe such regulations or other guidance as may be necessary to carry out the purposes of this subsection, including rules to—</text><clause id="id4937C6A29C724088A3F4020B3010B139"><enum>(i)</enum><text>protect the privacy of the owners of applicable savings bonds; and </text></clause><clause id="id0C917CAE329441829D80968356F91D37"><enum>(ii)</enum><text>ensure that any information provided to a State under this subsection shall be used solely to carry out the purposes of this subsection.</text></clause></subparagraph><subparagraph id="idE095287715644D5E8675B748E8E868C1"><enum>(B)</enum><text>Any regulations or guidance prescribed by the Secretary pursuant to subparagraph (A) shall not have the effect of prohibiting, restricting, or otherwise preventing a State from obtaining all information described in paragraph (1).</text></subparagraph></paragraph><paragraph indent="up1" id="idA87D1A36389A4CEFA87BF0F93250CFB2"><enum>(3)</enum><text>Not later than 12 months after the date of enactment of this subsection, and annually thereafter, the Secretary shall submit to the Committee on Appropriations and the Committee on Finance of the Senate a report assessing all efforts to satisfy the requirement under paragraph (1).</text></paragraph><paragraph indent="up1" id="id2950D92627624D5C8C81EF993C8EAC19"><enum>(4)</enum><text>Any State that receives information described in paragraph (1) with respect to an applicable savings bond may use such information to locate the registered owner of such bond pursuant to the same standards and requirements as are applicable under the abandoned property rules and regulations of such State.</text></paragraph><paragraph indent="up1" id="idAB6F9C06174B41D78FD0EFBFF8DE14F1"><enum>(5)</enum><text>For purposes of this subsection, the term <term>applicable savings bond</term> means a matured savings bond, and all payment of such bond, including interest, for which such bond—</text><subparagraph id="id6A13330F37714F938A9A47979455DC7F"><enum>(A)</enum><text>was originally in paper, paperless, or electronic form; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id57B7D439CAA847BD97329ED264032A85"><enum>(B)</enum><text>has not been redeemed by the registered owner.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section><enum>II</enum><header>Retirees</header><section display-inline="no-display-inline" section-type="subsequent-section" id="H0FE89658149D4D2694080A969A908709"><enum>201.</enum><header>Increase in age for required beginning date for mandatory distributions</header><subsection id="HAAE98DDD87B446B0AC1FB22E9A6882DE"><enum>(a)</enum><header>Increase in age for required beginning date</header><paragraph id="H86FBF013E41D484DB9A800C76AAE9A55"><enum>(1)</enum><header>In general</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(9)(C)(i)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8C70895444A54C2AB95632D21504CD54"><subclause id="H5797DB3943124A83B18EB169567ED567"><enum>(I)</enum><text>the first calendar year in which the employee attains the applicable age for such calendar year, or</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H2237E65AE22C4B7FAF26044A27D321BE"><enum>(2)</enum><header>Special rule for owners</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(9)(C)(ii)</external-xref> is amended by striking <quote>in which the employee attains age 72</quote> and inserting <quote>described in clause (i)(I) with respect to the employee</quote>.</text></paragraph></subsection><subsection id="HFBF15C573AF142E9A0FB5DD561D7B8C6"><enum>(b)</enum><header>Mandatory distribution age</header><text>Paragraph (9) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)</external-xref> is amended by inserting at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5603510672DB4AD0AD2FC7E8C84612B8"><subparagraph id="H6838DB4DF9A14895AA7E3933649AC1BD"><enum>(J)</enum><header>Applicable age</header><text>For purposes of this paragraph—</text><clause id="H61B3C439FB1749208CE0FA4813C86B80"><enum>(i)</enum><header>In general</header><text>The applicable age is—</text><subclause id="HE507C75833B24E7AB6F251136554426F"><enum>(I)</enum><text>for calendar years before 2032, age 72, and</text></subclause><subclause id="idBB0AE1F4E4FF4BF0A787B6716A31165D"><enum>(II)</enum><text>for calendar years after 2031, age 75.</text></subclause></clause><clause id="id0137CCB0A60C44E8A681156E86FBC192"><enum>(ii)</enum><header>Transition rule</header><text>If, as of a calendar year, an employee has not attained the applicable age with respect to such year, such employee shall be treated as not having attained the applicable age under this paragraph for such year without regard to whether, in a previous calendar year, the employee had attained the applicable age with respect to such previous calendar year.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0D7F98D940F1423086F6784E38B822C2"><enum>(c)</enum><header>Spouse beneficiaries</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(9)(B)(iv)</external-xref> is amended by striking <quote>age 72</quote> and inserting <quote>the applicable age</quote>.</text></subsection><subsection id="H732F8CC3F88A470BAA332B372E6B9F8A"><enum>(d)</enum><header>Conforming amendment</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408</external-xref> is amended by striking <quote>age 72</quote> and inserting <quote>the applicable age determined under section 401(a)(9)(J) with respect to such individual</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H7FEA1B2694AA40EC8E185EBCCFE6D9BF"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to calendar years beginning after the date of the enactment of this Act.</text></subsection></section><section id="H807F543FCEC04448A278F31952AEB419"><enum>202.</enum><header>Qualifying longevity annuity contracts</header><subsection id="HEB6CEAA97F4544D995224047AFAFEDCB"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than the date which is 18 months after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall amend the regulation issued by the Department of the Treasury relating to <quote>Longevity Annuity Contracts</quote> (79 Fed. Reg. 37633 (July 2, 2014)), as follows:</text><paragraph id="H38AE7887F6D041249A02D3AD23D7F5F0"><enum>(1)</enum><header>Repeal 25-percent premium limit</header><text>The Secretary (or delegate) shall amend Q&A–17(b)(3) of Treas. Reg. section 1.401(a)(9)–6 and Q&A–12(b)(3) of Treas. Reg. section 1.408–8 to eliminate the requirement that premiums for qualifying longevity annuity contracts be limited to 25 percent of an individual’s account balance, and to make such corresponding changes to the regulations and related forms as are necessary to reflect the elimination of this requirement.</text></paragraph><paragraph id="H5CFB84C5DA2249588921FDB8B19B39CA"><enum>(2)</enum><header>Increase dollar limitation</header><subparagraph id="HFFA509AE06D84F61A64F7E84ED4AA90B"><enum>(A)</enum><header>In general</header><text>The Secretary (or delegate) shall amend Q&A–17(b)(2)(i) of Treas. Reg. section 1.401(a)(9)–6 and Q&A–12(b)(2)(i) of Treas. Reg. section 1.408–8 to increase the dollar limitation on premiums for qualifying longevity annuity contracts from $125,000 to $200,000, and to make such corresponding changes to the regulations and related forms as are necessary to reflect this increase in the dollar limitation.</text></subparagraph><subparagraph id="H8D1935AAC9BA4A09A3D3DA3F4C3BDCCD"><enum>(B)</enum><header>Adjustments for inflation</header><text>The Secretary (or delegate) shall amend Q&A–17(d)(2)(i) of Treas. Reg. section 1.401(a)(9)–6 to provide that, in the case of calendar years beginning on or after January 1 of the second year following the year of enactment of this Act, the $200,000 dollar limitation (as increased by subparagraph (A)) will be adjusted at the same time and in the same manner as the limits are adjusted under <external-xref legal-doc="usc" parsable-cite="usc/26/415">section 415(d)</external-xref> of the Internal Revenue Code of 1986, except that the base period shall be the calendar quarter beginning July 1 of the year of enactment of this Act, and any increase to such dollar limitation which is not a multiple of $10,000 will be rounded to the next lowest multiple of $10,000.</text></subparagraph></paragraph><paragraph id="H7365E0D5CD374A4FA9627C66E4A321EC"><enum>(3)</enum><header>Facilitate joint and survivor benefits</header><text>The Secretary (or delegate) shall amend Q&A–17(c) of Treas. Reg. section 1.401(a)(9)–6, and make such corresponding changes to the regulations and related forms as are necessary, to provide that, in the case of a qualifying longevity annuity contract which was purchased with joint and survivor annuity benefits for the individual and the individual's spouse which were permissible under the regulations at the time the contract was originally purchased, a divorce occurring after the original purchase and before the annuity payments commence under the contract will not affect the permissibility of the joint and survivor annuity benefits or other benefits under the contract, or require any adjustment to the amount or duration of benefits payable under the contract, provided that any qualified domestic relations order (within the meaning of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(p)</external-xref> of the Internal Revenue Code of 1986) or, in the case of an arrangement not subject to section 414(p) of such Code or section 206(d) of the Employee Retirement Income Security Act of 1974, any divorce or separation instrument (as defined in subsection (b))—</text><subparagraph id="H46BBBCF5CDE9477D94471241F64CD58B"><enum>(A)</enum><text>provides that the former spouse is entitled to the survivor benefits under the contract;</text></subparagraph><subparagraph id="HE7FA6317EEE24EE8AD25650B53D7C265"><enum>(B)</enum><text>does not modify the treatment of the former spouse as the beneficiary under the contract who is entitled to the survivor benefits; or</text></subparagraph><subparagraph id="HDC52EDBB585349A8984649424ED379EF"><enum>(C)</enum><text>does not modify the treatment of the former spouse as the measuring life for the survivor benefits under the contract.</text></subparagraph></paragraph><paragraph id="id28f14ea29cfd4f2d9e91d05c4e92448d"><enum>(4)</enum><header>Permit short free look period</header><text>The Secretary (or delegate) shall amend Q&A–17(a)(4) of Treas. Reg. section 1.401(a)(9)–6 to ensure that such Q&A does not preclude a contract from including a provision under which an employee may rescind the purchase of the contract within a period not exceeding 90 days from the date of purchase.</text></paragraph></subsection><subsection id="id9e545e1b39c6452ea71434c6e3a23563"><enum>(b)</enum><header>Divorce or separation instrument</header><text>For purposes of subsection (a)(2), the term <term>divorce or separation instrument</term> means—</text><paragraph id="id608782c8916146d8ac3cb1feaa5d9116"><enum>(1)</enum><text>a decree of divorce or separate maintenance or a written instrument incident to such a decree;</text></paragraph><paragraph id="ide58fae50e4204232b2d6d14a34fa5a7a"><enum>(2)</enum><text>a written separation agreement; or</text></paragraph><paragraph id="id5b9625c0e4ca44e492adfdef02812a96"><enum>(3)</enum><text>a decree (not described in paragraph (1)) requiring a spouse to make payments for the support or maintenance of the other spouse. </text></paragraph></subsection><subsection id="H2A32625DEABF4FB2AF5C532C2BF006C9"><enum>(c)</enum><header>Effective dates, enforcement, and interpretations</header><paragraph id="HCF695FE4FDE34176BA3D190674EE2FB1"><enum>(1)</enum><header>Effective dates</header><subparagraph id="H7D5E9D7381AC45698D70BAB747821092"><enum>(A)</enum><text>Paragraphs (1) and (2) of subsection (a) shall be effective with respect to contracts purchased or received in an exchange on or after the date of the enactment of this Act.</text></subparagraph><subparagraph id="H8C37B2B87D0B427D952A2F2163CDBC66"><enum>(B)</enum><text>Paragraphs (3) and (4) of subsection (a) shall be effective with respect to contracts purchased or received in an exchange on or after July 2, 2014.</text></subparagraph></paragraph><paragraph id="HF4468D9ED914416DB62DE267D5E30457"><enum>(2)</enum><header>Enforcement and interpretations</header><text>Prior to the date on which the Secretary of the Treasury issues final regulations pursuant to subsection (a)—</text><subparagraph id="H9A131A3AF0654B8B9EAD9637BEA63888"><enum>(A)</enum><text>the Secretary (or delegate) shall administer and enforce the law in accordance with subsection (a) and the effective dates in paragraph (1) of this subsection; and</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H84263CD3228C429189C64BCA0267C44F"><enum>(B)</enum><text>taxpayers may rely upon their reasonable good faith interpretations of subsection (a). </text></subparagraph></paragraph></subsection><subsection id="id24f4614b5dc34dac9af00f40e0fd23a6"><enum>(d)</enum><header>Regulatory successor provision</header><text>Any reference to a regulation under this section shall be treated as including a reference to any successor regulation thereto. </text></subsection></section><section commented="no" id="H120D9FD69EF644C1AD74085FB3B8BC2E"><enum>203.</enum><header>Remove required minimum distribution barriers for life annuities</header><subsection commented="no" id="H6FC279AB64AF43E1A2A69F1F62019E62"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 401(a)(9), as amended by this Act, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HC3BC017BE10342E79B18332D531522AE"><subparagraph commented="no" id="H6EA77E8C5B0E4A13956AB9E3CE9A1F89"><enum>(K)</enum><header>Certain increases in payments under a commercial annuity</header><text display-inline="yes-display-inline">Nothing in this section shall prohibit a commercial annuity (within the meaning of section 3405(e)(6)) that is issued in connection with any eligible retirement plan (within the meaning of section 402(c)(8)(B), other than a defined benefit plan) from providing one or more of the following types of payments on or after the annuity starting date:</text><clause commented="no" id="H2E43DD6BBE074DE2B667C427AA9A55EB"><enum>(i)</enum><text>annuity payments that increase by a constant percentage, applied not less frequently than annually, at a rate that is less than 5 percent per year,</text></clause><clause commented="no" id="H12EC2CCE3DBD4AAEABB55C83A13A31EF"><enum>(ii)</enum><text>a lump sum payment that—</text><subclause commented="no" id="H0EB68D0E68C3451EA4681662F3564B00"><enum>(I)</enum><text>results in a shortening of the payment period with respect to an annuity or a full or partial commutation of the future annuity payments, provided that such lump sum is determined using reasonable actuarial methods and assumptions, as determined in good faith by the issuer of the contract, or</text></subclause><subclause commented="no" id="HCEA23126C0BD4940AE17D2E0E9A76579"><enum>(II)</enum><text>accelerates the receipt of annuity payments that are scheduled to be received within the ensuing 12 months, regardless of whether such acceleration shortens the payment period with respect to the annuity, reduces the dollar amount of benefits to be paid under the contract, or results in a suspension of annuity payments during the period being accelerated,</text></subclause></clause><clause commented="no" id="HD612783B247F4BA7A84A34F102EFA1DF"><enum>(iii)</enum><text>an amount which is in the nature of a dividend or similar distribution, provided that the issuer of the contract determines such amount based on a reasonable comparison of the actuarial factors assumed when calculating the initial annuity payments and the issuer’s experience with respect to those factors, or</text></clause><clause commented="no" id="H5793D9602FE543BB808DC4DB578E137F"><enum>(iv)</enum><text>a final payment upon death that does not exceed the excess of the total amount of the consideration paid for the annuity payments, less the aggregate amount of prior distributions or payments from or under the contract.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HD73B31B727CB4CCEA5ED089E9856C9DD"><enum>(b)</enum><header>Effective date</header><text>This section shall take effect on the date of the enactment of this Act. </text></subsection></section><section id="id100af49edb3e4efe8a515ab45a639901"><enum>204.</enum><header>Eliminating a penalty on partial annuitization</header><subsection id="id3772b9e56575452eaa4badd0d63d327b"><enum>(a)</enum><header>Eliminating a penalty on partial annuitization</header><text>The Secretary of the Treasury (or the Secretary's delegate) shall amend the regulations under <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(9)</external-xref> of the Internal Revenue Code of 1986 to provide that if an employee’s benefit is in the form of an individual account under a defined contribution plan, the plan may allow the employee to elect to have the amount required to be distributed from such account under such section for a year to be calculated as the excess of the total required amount for such year over the annuity amount for such year.</text></subsection><subsection id="id48AE4C6D72B04E63880449F689334447"><enum>(b)</enum><header>Definitions</header><text>For purposes of this section—</text><paragraph id="id1a401e8d5e094554ba339b0fba5a9296"><enum>(1)</enum><header>Total required amount</header><text>The term <term>total required amount</term>, with respect to a year, means the amount which would be required to be distributed under Treas. Reg. section 1.401(a)(9)–5 (or any successor regulation) for the year, determined by treating the account balance as of the last valuation date in the immediately preceding calendar year as including the value on that date of all annuity contracts which were purchased with a portion of the account and from which payments are made in accordance with Treas. Reg. section 1.401(a)(9)–6.</text></paragraph><paragraph id="id1d1b4f1ddca748cf8d216f832704a5f3"><enum>(2)</enum><header>Annuity amount</header><text>The term <term>annuity amount</term>, with respect to a year, is the total amount distributed in the year from all annuity contracts described in paragraph (1).</text></paragraph></subsection><subsection id="id423851ab556a42119a5e21e9e44eb65f"><enum>(c)</enum><header>Conforming regulatory amendments</header><text>The Secretary of the Treasury (or the Secretary's delegate) shall amend the regulations under sections 403(b)(10), 408(a)(6), 408(b)(3), and 457(d)(2) of the Internal Revenue Code of 1986 to conform to the amendments described in subsection (a). Such conforming amendments shall treat all individual retirement plans (as defined in section 7701(a)(37) of such Code) which an individual holds as the owner, or which an individual holds as a beneficiary of the same decedent, as one such plan for purposes of the amendments described in subsection (a). Such conforming amendments shall also treat all contracts described in section 403(b) of such Code which an individual holds as an employee, or which an individual holds as a beneficiary of the same decedent, as one such contract for such purposes.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id28BAD954DF4C4B098F752D1DD008E0D5"><enum>(d)</enum><header>Effective date</header><text>The modifications and amendments required under subsections (a) and (c) shall be deemed to have been made as of the date of the enactment of this Act, and as of such date—</text><paragraph commented="no" display-inline="no-display-inline" id="id0E4DCE9D910B401EA012AFEDA4B0B0A5"><enum>(1)</enum><text>all applicable laws shall be applied in all respects as though the actions which the Secretary of the Treasury (or the Secretary's delegate) is required to take under such subsections had been taken, and</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5A547EC7E629462D8849EDE77EC395D7"><enum>(2)</enum><text>until such time as such actions are taken, taxpayers may rely upon their reasonable good faith interpretations of this section. </text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H8104205BA5AA4FBD93567846FF3B9B2E"><enum>205.</enum><header display-inline="yes-display-inline">Reduction in excise tax on certain accumulations in qualified retirement plans</header><subsection commented="no" display-inline="no-display-inline" id="H1044D4F741304C7F94505C2C2E7A2032"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/4974">Section 4974(a)</external-xref> is amended by striking <quote>50 percent</quote> and inserting <quote>25 percent</quote>.</text></subsection><subsection commented="no" id="H7A89961B0E714399BC62FA07FD097FE9"><enum>(b)</enum><header>Reduction in excise tax on failures to take required minimum distributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4974">Section 4974</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H9A398C3C83D74564BC96AD38182B8BF5"><subsection commented="no" id="H09958D3673C74B7A934234ED924754B0"><enum>(e)</enum><header>Reduction of tax in certain cases</header><paragraph commented="no" id="H9D9362CDA4F2411BB8562A07F31987AD"><enum>(1)</enum><header>Reduction</header><text>In the case of a taxpayer who—</text><subparagraph commented="no" id="HB19FD5A432FD4A8F9C3464C412374432"><enum>(A)</enum><text>receives a distribution, during the correction window, of the amount which resulted in imposition of a tax under subsection (a) from the same plan to which such tax relates, and</text></subparagraph><subparagraph commented="no" id="HF2382354B10A468B86D150E659A5C85A"><enum>(B)</enum><text>submits a return, during the correction window, reflecting such tax (as modified by this subsection),</text></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">the first sentence of subsection (a) shall be applied by substituting <term>10 percent</term> for <term>25 percent</term>.</continuation-text></paragraph><paragraph commented="no" id="HF53E65D7FE754F6FBACF30EF49E6CD43"><enum>(2)</enum><header>Correction window</header><text>For purposes of this subsection, the term <term>correction window</term> means the period of time beginning on the date on which the tax under subsection (a) is imposed with respect to a shortfall of distributions from a plan described in subsection (a), and ending on the earliest of—</text><subparagraph id="idf0888a947e52470195aae8652abba872"><enum>(A)</enum><text>the date of mailing a notice of deficiency with respect to the tax imposed by subsection (a) under section 6212,</text></subparagraph><subparagraph id="id8358d794eb8442e3b4346995843c5b69"><enum>(B)</enum><text>the date on which the tax imposed by subsection (a) is assessed, or </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF55EC3E53C604070A25637FB8B1660D1"><enum>(C)</enum><text>the last day of the second taxable year that begins after the end of the taxable year in which the tax under subsection (a) is imposed.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H829ECF75EA154FEBA0F7D29727C49712"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. </text></subsection></section><section id="ID3735153A4738440F890A1B601B328517"><enum>206.</enum><header>Clarification of substantially equal periodic payment rule</header><subsection id="ID21D8522D5BC1454AA818F30792D13734"><enum>(a)</enum><header>In general</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)</external-xref> is amended by inserting at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="IDF5026EA436254DFB8EFBA13B883F212D"><subparagraph id="ID274E8E0DCFFF49918CA30D2880B39F10"><enum>(C)</enum><header>Rollovers to subsequent plan</header><text>If—</text><clause id="ID0BA7F9024EDE44188DBB88C41E83BC6C"><enum>(i)</enum><text>payments described in paragraph (2)(A)(iv) are being made from a qualified retirement plan,</text></clause><clause id="IDC23164AC35494180B6043809827F3704"><enum>(ii)</enum><text>a transfer or a rollover from such qualified retirement plan of all or a portion of the taxpayer's benefit under the plan is made to another qualified retirement plan, and</text></clause><clause id="ID81FD9B47314F4EAD90EEDEC05E8D435A"><enum>(iii)</enum><text>distributions from the transferor and transferee plans would in combination continue to satisfy the requirements of paragraph (2)(A)(iv) if they had been made only from the transferor plan,</text></clause><continuation-text continuation-text-level="subparagraph">such transfer or rollover shall not be treated as a modification under subparagraph (A)(ii), and compliance with paragraph (2)(A)(iv) shall be determined on the basis of the combined distributions described in clause (iii).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idbc3830915d3f47129f98b324dfc1766f"><enum>(b)</enum><header>Nonqualified annuity contracts</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(q)</external-xref> is amended—</text><paragraph id="id096F0CADEBA9447E8C78CA2413A99341"><enum>(1)</enum><text>by redesignating clauses (i) and (ii) of subparagraph (B) as subclauses (I) and (II), and by moving such subclauses 2 ems to the right;</text></paragraph><paragraph id="idC449A57254394229998D6A99DBA83CEE"><enum>(2)</enum><text>by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), by moving such clauses 2 ems to the right, and by adjusting the flush language at the end accordingly;</text></paragraph><paragraph id="id761D711B36A84E69B790CF72D543F7B2"><enum>(3)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">payments</header-in-text>.—If</quote> and inserting “<header-in-text level="paragraph" style="OLC">payments</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6F66BA236FAD4BC5B1F91921FD8DA066"><subparagraph id="id6223BD075DF448D78E7A0BAE23DDD0DC"><enum>(A)</enum><header>In general</header><text>If—</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph><paragraph id="id4F5AACA56DB74B5C864343ED294ABB49"><enum>(4)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id00ad7bb6d1214e6aba562de49b21cf05"><subparagraph id="ideba72cd117f34c7da5110ca3b02fc3de"><enum>(B)</enum><header>Exchanges to subsequent contracts</header><text>If—</text><clause id="idc597fc462a654371a5def77699ddbe0e"><enum>(i)</enum><text>payments described in paragraph (2)(D) are being made from an annuity contract,</text></clause><clause id="id5e53a0496c0c414a88adf98baad0d30b"><enum>(ii)</enum><text>an exchange of all or a portion of such contract for another contract is made under section 1035, and</text></clause><clause id="id61b30c18fced494895500e85f0d95a55"><enum>(iii)</enum><text>the aggregate distributions from the contracts involved in the exchange continue to satisfy the requirements of paragraph (2)(D) as if the exchange had not taken place,</text></clause><continuation-text continuation-text-level="subparagraph">such exchange shall not be treated as a modification under subparagraph (A)(ii), and compliance with paragraph (2)(D) shall be determined on the basis of the combined distributions described in clause (iii).</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idddf983cb029547c5ba3645f9aa2e217a"><enum>(c)</enum><header>Information reporting</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6724">Section 6724</external-xref> is amended by inserting at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id325FB3E5F1AC45D1ABC914F642A7F2B2"><subsection commented="no" id="idb0cbf736b8004eebbcafba2eb5e7ef91"><enum>(g)</enum><header>Special rule for reporting certain additional taxes</header><text>No penalty shall be imposed under section 6721 or 6722 if—</text><paragraph commented="no" id="id5675a527fe6f46c289ffe36c281c36d4"><enum>(1)</enum><text>a person makes a return or report under section 6047(d) or 408(i) with respect to any distribution,</text></paragraph><paragraph commented="no" id="id97a738e78f9f4602bf3202a11d9a8b5d"><enum>(2)</enum><text>such distribution is made following a rollover, transfer, or exchange described in section 72(t)(4)(C) or section 72(q)(3)(C),</text></paragraph><paragraph commented="no" id="id37c39006abd14415bc0b33a2634959b4"><enum>(3)</enum><text>in making such return or report the person relies upon a certification provided by the taxpayer that the distributions satisfy the requirements of section 72(t)(4)(C)(iii) or section 72(q)(3)(B)(iii), as applicable, and</text></paragraph><paragraph commented="no" id="idf1cdce777a394add99d5325a3f34b0d0"><enum>(4)</enum><text>such person does not have actual knowledge that the distributions do not satisfy such requirements.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idd962d71cf63c427cb5411e22cbdc6be9"><enum>(d)</enum><header>Safe harbor for annuity payments</header><paragraph id="idf4e9514b33f84905826f962bf1da10b6"><enum>(1)</enum><header>Qualified retirement plans</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(2)</external-xref> is amended by adding at the end the following flush sentence:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9B8938A1998B45C0AA898AF03CD8A38D"><quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For purposes of clause (iv), periodic payments shall not fail to be treated as substantially equal merely because they are amounts received as an annuity, and such periodic payments shall be deemed to be substantially equal if they are payable over a period described in clause (iv) and satisfy the requirements applicable to annuity payments under section 401(a)(9).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id4d4854b181e34ee6b14a6ea10096c7f1"><enum>(2)</enum><header>Other annuity contracts</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(q)</external-xref> is amended by adding at the end the following flush sentence:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id814D6DABD42F44A2B43555B256333A42"><quoted-block-continuation-text commented="no" quoted-block-continuation-text-level="paragraph">For purposes of subparagraph (D), periodic payments shall not fail to be treated as substantially equal merely because they are amounts received as an annuity, and such periodic payments shall be deemed to be substantially equal if they are payable over a period described in subparagraph (D) and would satisfy the requirements applicable to annuity payments under section 401(a)(9) if such requirements applied.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="ID1B03B736BAAC46A59E149940A7DC9264"><enum>(e)</enum><header>Effective dates</header><paragraph id="idc4327fb8a567414e83fdabe861c89e45"><enum>(1)</enum><header>In general</header><text>The amendments made by subsections (a), (b), and (c) shall apply to transfers, rollovers, and exchanges occurring on or after the date of the enactment of this Act.</text></paragraph><paragraph id="id44d2e7c38c3b4f8fb6c6a2bab7726258"><enum>(2)</enum><header>Annuity payments</header><text>The amendment made by subsection (d) shall apply to distributions commencing on or after the date of the enactment of this Act.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6afd41f6420d434fbe42c257548604fe"><enum>(3)</enum><header>No inference</header><text>Nothing in the amendments made by this section shall be construed to create an inference with respect to the law in effect prior to the effective date of such amendments. </text></paragraph></subsection></section><section commented="no" id="HB23C411EF1674B7AB10A32ED82C404F5"><enum>207.</enum><header>Recovery of retirement plan overpayments</header><subsection commented="no" id="H3C074CF9355D42D594211668627F47AB"><enum>(a)</enum><header>Qualification requirements</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H3798675328514EC49412A1E97CFF747D"><subsection commented="no" id="H81019B2C6C4C4D6DA3A216A89EEEEA8E"><enum>(aa)</enum><header>Special rules applicable to benefit overpayments</header><paragraph commented="no" id="H3DE02B76F7F449348B1301091FDC6E65"><enum>(1)</enum><header>In general</header><text>A plan shall not fail to be treated as described in clause (i), (ii), (iii), or (iv) of section 219(g)(5)(A) (and shall not fail to be treated as satisfying the requirements of section 401(a) or 403) merely because—</text><subparagraph commented="no" id="H8CFA4BD8928042C1B36AC6EB346C9214"><enum>(A)</enum><text>the plan fails to obtain payment from any participant, beneficiary, employer, plan sponsor, fiduciary, or other party on account of any inadvertent benefit overpayment made by the plan, or</text></subparagraph><subparagraph commented="no" id="HD9F1A40053C44F07BAE46F0647AB44E6"><enum>(B)</enum><text>the plan sponsor amends the plan to increase past or future benefit payments to affected participants and beneficiaries in order to adjust for prior inadvertent benefit overpayments.</text></subparagraph></paragraph><paragraph commented="no" id="H1A7E65B262DF46F0990330649E0A94D2"><enum>(2)</enum><header>Reduction in future benefit payments and recovery from responsible party</header><text>Paragraph (1) shall not fail to apply to a plan merely because, after discovering a benefit overpayment, such plan—</text><subparagraph commented="no" id="HA623879C4D424C3CBF165952597B1C3F"><enum>(A)</enum><text>reduces future benefit payments to the correct amount provided for under the terms of the plan, or</text></subparagraph><subparagraph commented="no" id="HF51658DB2ACB47FF92C1177F5DAF2AA6"><enum>(B)</enum><text>seeks recovery from the person or persons responsible for such overpayment.</text></subparagraph></paragraph><paragraph commented="no" id="H9B43224B0D874F3284F481F285FD157F"><enum>(3)</enum><header>Employer funding obligations</header><text>Nothing in this subsection shall relieve an employer of any obligation imposed on it to make contributions to a plan to satisfy the minimum funding standards under sections 412 and 430 or to prevent or restore an impermissible forfeiture in accordance with section 411.</text></paragraph><paragraph commented="no" id="H8B1C011CF94942ED935CEEA2FAF430FB"><enum>(4)</enum><header>Observance of benefit limitations</header><text>Notwithstanding paragraph (1), a plan to which paragraph (1) applies shall observe any limitations imposed on it by section 401(a)(17) or 415. The plan may enforce such limitations using any method approved by the Secretary for recouping benefits previously paid or allocations previously made in excess of such limitations.</text></paragraph><paragraph commented="no" id="H9BA2E54635E14E9A87E0D7633AE6AE91"><enum>(5)</enum><header>Coordination with other qualification requirements</header><text>The Secretary may issue regulations or other guidance of general applicability specifying how benefit overpayments and their recoupment or non-recoupment from a participant or beneficiary shall be taken into account for purposes of satisfying any requirement applicable to a plan to which paragraph (1) applies.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="H83202E5520DB455DADB1A6B76A14A5A7"><enum>(b)</enum><header>Rollovers</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/402">Section 402(c)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE832D71611DD43AEB94026C65479AB4E"><paragraph commented="no" id="HB99396DBF27241EF9B79ECBC0DCC60D0"><enum>(12)</enum><text>In the case of an inadvertent benefit overpayment from a plan to which section 414(aa)(1) applies which is transferred to an eligible retirement plan by or on behalf of a participant or beneficiary—</text><subparagraph commented="no" id="H2D0A5C0945FC4C21B7BCBED24BF8C7A5"><enum>(A)</enum><text>the portion of such overpayment with respect to which recoupment is not sought on behalf of the plan shall be treated as having been paid in an eligible rollover distribution if the payment would have been an eligible rollover distribution but for being an overpayment, and</text></subparagraph><subparagraph commented="no" id="H161FED1D8842427CA581F082CAB2320F"><enum>(B)</enum><text>the portion of such overpayment with respect to which recoupment is sought on behalf of the plan shall be permitted to be returned to such plan and in such case shall be treated as an eligible rollover distribution transferred to such plan by the participant or beneficiary who received such overpayment (and the plans making and receiving such transfer shall be treated as permitting such transfer).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="HF4F88C887D6A4205A4F5838E97818FC9"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act.</text></subsection><subsection commented="no" id="H27CEA45F2CEA46C1A205EB2F770B4074"><enum>(d)</enum><header>Certain actions before effective date</header><text>Plans, fiduciaries, employers, and plan sponsors are entitled to rely on a reasonable good faith interpretation of then existing administrative guidance for inadvertent benefit overpayment recoupments and recoveries that commenced before the first day of the first plan year beginning after the date of the enactment of this Act.</text></subsection></section><section id="H6CB25460290142738AF031B7413341C1"><enum>208.</enum><header>Retirement Savings Lost and Found</header><subsection id="H6F59FAA61EB643B5B5C43F719BCF852F"><enum>(a)</enum><header>Retirement Savings Lost and Found</header><paragraph id="H34F9CCDB07A34778BE798913892ACF5D"><enum>(1)</enum><header>Establishment</header><subparagraph id="HDC45215363E344E7A5174BDF02A3D6B8"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 3 years after the date of the enactment of this Act, the Secretary of the Treasury, in consultation with the Secretary of Labor, the Secretary of Commerce, and the Director of the Pension Benefit Guaranty Corporation, shall establish an online searchable database (to be managed by the Secretary of the Treasury in accordance with <external-xref legal-doc="usc" parsable-cite="usc/26/7901">section 7901</external-xref> of the Internal Revenue Code of 1986) to be known as the <quote>Retirement Savings Lost and Found</quote>. The Retirement Savings Lost and Found shall—</text><clause id="H40F29B686ADD4798859EC20C744C851A"><enum>(i)</enum><text>allow an individual to search for information that enables the individual to locate the plan administrator of any plans with respect to which the individual is or was a participant or beneficiary, and to provide contact information for the plan administrator of any plan described in subparagraph (B);</text></clause><clause id="H0550E6400FBA46198A704136DE98B44A"><enum>(ii)</enum><text>allow the Secretary of the Treasury to assist such an individual in locating any plan of the individual; and</text></clause><clause commented="no" id="H7C179A7CB2684DA880BEE0E710527F2A"><enum>(iii)</enum><text>allow the Secretary of the Treasury to make any necessary changes to contact information on record for the plan administrator based on any changes to the plan due to merger or consolidation of the plan with any other plan, division of the plan into two or more plans, bankruptcy, termination, change in name of the plan, change in name or address of the plan administrator, or other causes.</text></clause><continuation-text continuation-text-level="subparagraph">The Retirement Savings Lost and Found established under this paragraph shall include information reported under section 7901 of such Code and other relevant information obtained by the Secretary of the Treasury.</continuation-text></subparagraph><subparagraph id="HF8F6ED6463824B229FDF502793330AF6"><enum>(B)</enum><header>Plans described</header><text>A plan described in this subparagraph is a plan to which the vesting standards of <external-xref legal-doc="usc" parsable-cite="usc/26/411">section 411</external-xref> of the Internal Revenue Code of 1986 apply.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA8961D7F0695421EB4492E875C04829B"><enum>(2)</enum><header display-inline="yes-display-inline">Administration</header><text display-inline="yes-display-inline">The Retirement Savings Lost and Found established under paragraph (1) shall provide individuals described in paragraph (1)(A) only with the ability to view contact information for the plan administrator of any plan with respect to which the individual is or was a participant or beneficiary, sufficient to allow the individual to locate the individual’s plan in order to recover any benefit owing to the individual under the plan.</text></paragraph><paragraph id="HF1E90D672B784EB38799CB9DB7FB3ECD"><enum>(3)</enum><header>Safeguarding participant privacy and security</header><subparagraph id="id652B51C14BD1435D8A3C415908D6E366"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In establishing the Retirement Savings Lost and Found under paragraph (1), the Secretary of the Treasury, in consultation with the Secretary of Labor, the Secretary of Commerce, and the Director of the Pension Benefit Guaranty Corporation, shall take all necessary and proper precautions to ensure that individuals’ plan information maintained by the Retirement Savings Lost and Found is protected and that persons other than the individual cannot fraudulently claim the benefits to which any individual is entitled, and to allow any individual to opt out of inclusion in the Retirement Savings Lost and Found at the election of the individual.</text></subparagraph><subparagraph id="id8e8a28f362c645b09cedc278131b397f"><enum>(B)</enum><header>Disclosure</header><text>The Secretary of the Treasury may, through regulations or other guidance—</text><clause id="idB316668CCFDF403B85F9A9F96BB62FF7"><enum>(i)</enum><text>authorize disclosure to the agencies jointly administering the Retirement Savings Lost and Found of such return information as is necessary to administer the Retirement Savings Lost and Found database, but only to such employees whose official duties with respect to the database require such disclosure, and</text></clause><clause id="id4947FB2A173045B88A00DA1C0E2ED78B"><enum>(ii)</enum><text>authorize disclosure to plan participants and beneficiaries of the contact information for the plan administrator of any plan with respect to which such individuals are or were a participant or beneficiary.</text></clause></subparagraph></paragraph><paragraph commented="no" id="id9D94035E83A4403491F60F000602E5A5"><enum>(4)</enum><header>Secretary</header><text>Any reference in this subsection to the Secretary of the Treasury includes such Secretary's delegate.</text></paragraph></subsection><subsection id="H26FCCFC6EF2241E18A20DFE308F8A357"><enum>(b)</enum><header>Office of the Retirement Savings Lost and Found</header><paragraph display-inline="no-display-inline" id="H4889676836AD41A8A3B1519B12948999"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Subtitle F is amended by adding at the end the following new chapter:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7DCF8216D8E14B03B8CABF9ABB379AC1"><chapter id="idAA865B6C49B8489D9054E5C5C7150D67" style="OLC"><enum>81</enum><header>Office of the Retirement Savings Lost and Found</header><toc><toc-entry level="section" idref="HBD4A4D71A8304863AFE478379526B60D">Sec. 7901. Office of the Retirement Savings Lost and Found.</toc-entry></toc><section id="HBD4A4D71A8304863AFE478379526B60D"><enum>7901.</enum><header>Office of the Retirement Savings Lost and Found</header><subsection display-inline="no-display-inline" id="HFC3423A7ADF348F1AA6EA241CBB424C9"><enum>(a)</enum><header>Establishment; responsibilities of Office</header><paragraph id="H6C991E02C3F64E0DBFBC286E3B55343B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 2 years after the date of the enactment of this section, the Secretary shall establish within the Department of the Treasury an Office of the Retirement Savings Lost and Found (in this section referred to as the <quote>Office</quote>).</text></paragraph><paragraph id="H3029BBADFD324A2B8443F8C41CB6E40A"><enum>(2)</enum><header>Responsibilities of Office</header><text>The Office shall—</text><subparagraph id="H40BE2A890CE54A1B880B1DC6185AA5BF"><enum>(A)</enum><text>carry out subsection (b),</text></subparagraph><subparagraph id="HC3673CDF8965445984A8B85CB3D843C5"><enum>(B)</enum><text display-inline="yes-display-inline">maintain the Retirement Savings Lost and Found established under section 208(a) of the <short-title>Enhancing American Retirement Now Act</short-title>, and</text></subparagraph><subparagraph id="H6EA67559D16648C893B9FD50D78413F4"><enum>(C)</enum><text display-inline="yes-display-inline">perform an annual audit of plan information contained in the Retirement Savings Lost and Found and ensure that such information is current and accurate.</text></subparagraph></paragraph></subsection><subsection id="H745C72CD59FB44F8A1A5FAD2B62E2279"><enum>(b)</enum><header>Certain non-Responsive participants entitled to small benefits</header><paragraph id="HBF87F0450A0D47CE8281F8532A13A449"><enum>(1)</enum><header>General rule</header><subparagraph id="H94ABAFE123C74D28A62535E2DB5939C9"><enum>(A)</enum><header>Transfer to the Office of the Retirement Savings Lost and Found</header><text display-inline="yes-display-inline">The administrator of a plan which is not terminated and to which section 401(a)(31)(B) applies shall transfer to the Office the amount required to be transferred under section 401(a)(31)(B)(iv) for a non-responsive participant.</text></subparagraph><subparagraph id="HF4A826EEC066485BB82753FDC3504765"><enum>(B)</enum><header>Information and payment to the Office</header><text>Upon making a transfer under subparagraph (A), the plan administrator shall provide such information and certifications as the Office shall specify, including with respect to the transferred amount and the non-responsive participant.</text></subparagraph><subparagraph id="HD53A303A4ADE42BC9D978D1B771EBBDC"><enum>(C)</enum><header>Information requirements after transfer</header><text display-inline="yes-display-inline">In the event that, after a transfer is made under subparagraph (A), the relevant non-responsive participant contacts the plan administrator or the plan administrator discovers information that may assist the Office in locating the non-responsive participant, the plan administrator shall notify and provide such information as the Office shall specify to the Office.</text></subparagraph><subparagraph id="H9561E17307B24796B9B5F738470F920C"><enum>(D)</enum><header>Search and payment by the Office following transfer</header><text display-inline="yes-display-inline">The Office shall periodically, and upon receiving information described in subparagraph (C), conduct a search for the non-responsive participant for whom the Office has received a transfer under subparagraph (A). Upon location of a non-responsive participant who claims benefits, the Office shall make a single payment to the non-responsive participant in an amount equal to the sum of—</text><clause id="H82004E0F432C4251808C9B0AD11D1052"><enum>(i)</enum><text display-inline="yes-display-inline">the amount transferred to the Office under subparagraph (A) for such participant, and</text></clause><clause id="H408392F5122F4478940C46DA08CD175D"><enum>(ii)</enum><text>any earnings on the amount described in clause (i) </text></clause></subparagraph></paragraph><paragraph id="H8C2CF96A968847E787EF7E86A610689A"><enum>(2)</enum><header>Definition</header><text>For purposes of this subsection, the term <quote>non-responsive participant</quote> means a participant or beneficiary of a plan described in paragraph (1)(A)—</text><subparagraph id="HA2A108725B4D4DB0B28E80EF7C9B10E5"><enum>(A)</enum><text display-inline="yes-display-inline">who is entitled to a benefit subject to a mandatory transfer under section 401(a)(31)(B)(iii), and</text></subparagraph><subparagraph id="H194DD4CD785544208B44FA27D9167A40"><enum>(B)</enum><text>for whom the plan has satisfied the conditions in section 401(a)(31)(B)(iv).</text></subparagraph></paragraph><paragraph id="H8B19F789D555470D80C1F5E9D8A9DC18"><enum>(3)</enum><header>Regulatory Authority</header><text>The Secretary shall prescribe such regulations as are necessary to carry out the purposes of this section, including rules relating to the amount payable to the Office and the amount to be paid by the Office.</text></paragraph></subsection><subsection id="H2E57E5C904004876B3CCC3523443FCA1"><enum>(c)</enum><header>Information collection</header><text display-inline="yes-display-inline">Within such period after the end of a plan year as the Secretary may by regulations prescribe, the administrator of a plan to which the vesting standards of section 411 apply shall submit to the Office in such form as the Secretary may require—</text><paragraph id="HA32A47CBB22E44BDB6A9C5F4090357CB"><enum>(1)</enum><text>the information described in paragraphs (1) through (4) of section 6057(b),</text></paragraph><paragraph id="H0AEFF3CD212F4AE0BA5C09EEB358C546"><enum>(2)</enum><text>the information described in subparagraphs (A), (B), (E), and (F) of section 6057(a)(2), and</text></paragraph><paragraph id="id6D37A74384B2488E827F5D7B771573E7"><enum>(3)</enum><text>such other information as the Secretary may require.</text></paragraph></subsection><subsection id="H9BC41C4B120B4CDF9B34606883EBB074"><enum>(d)</enum><header>Effective date</header><text display-inline="yes-display-inline">The requirements of subsections (b) and (c) shall apply with respect to plan years beginning after the second December 31 occurring after the date of the enactment of this section.</text></subsection><subsection id="HF960FC51CAB9455EB5DC7C7530E49120"><enum>(e)</enum><header>Establishment of fund</header><paragraph id="id0ACE413788E946449CC9DD075686B74B"><enum>(1)</enum><header>In general</header><text>A fund shall be established within the Treasury for the payment of benefits under subsection (b)(1)(D). Such fund shall be credited with the appropriate—</text><subparagraph id="id9F7720AAF26E4C7497CF21D480D82D6A"><enum>(A)</enum><text display-inline="yes-display-inline">amounts transferred to the Office of the Retirement Savings Lost and Found under subsection (b)(1)(A), and</text></subparagraph><subparagraph id="idBB90DE698DEA42C2A0CAB0AC5AC8E623"><enum>(B)</enum><text>earnings on investments of the fund or on assets credited to the fund.</text></subparagraph></paragraph><paragraph id="id2BAF25B46484432DA393F3228772A491"><enum>(2)</enum><header>Investment of funds</header><text display-inline="yes-display-inline">Whenever the Secretary determines that the moneys of any fund are in excess of current needs, the Secretary may invest such amounts as the Secretary determines advisable in obligations issued or guaranteed by the United States.</text></paragraph></subsection></section></chapter><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="HD74D8E041F144FB992493AE0CFF91529"><enum>(2)</enum><header>Conforming amendment</header><text>The table of chapters for subtitle F is amended by adding at the end the following new item:</text><quoted-block style="OLC" id="id477dce55-4dae-40ad-92fe-a057c165827c"><toc><toc-entry level="chapter" idref="idAA865B6C49B8489D9054E5C5C7150D67">Chapter 81—Office of the Retirement Savings Lost and Found</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H7052B6B2B6D847A5888656CFD74EF734"><enum>(c)</enum><header>Mandatory transfers of rollover distributions</header><paragraph id="H9306E667B3CB44AE9AEA3662F6C2DF6C"><enum>(1)</enum><header>Cap</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Sections 401(a)(31)(B)(ii)</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/26/411"> 411(a)(11)(A)</external-xref> are each amended by striking <quote>$5,000</quote> and inserting <quote>$6,000</quote>.</text></paragraph><paragraph id="H8176DD6294E247C48F544698310ED42B"><enum>(2)</enum><header>Distribution of larger amounts to individual retirement plans only</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)(31)(B)(i)</external-xref> is amended by adding at the end the following: <quote>The Retirement Savings Lost and Found established by section 208 of the <short-title>Enhancing American Retirement Now Act</short-title> shall not be treated as a trustee or issuer which is eligible to receive such distributions.</quote>.</text></paragraph><paragraph id="H497B467A23614DD7B8E9426DFC5B6056"><enum>(3)</enum><header>Lesser amounts</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)(31)(B)</external-xref> is amended by adding at the end the following new clauses:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H1D5FCFC0C2D649F2BFCE6112EA362B3C"><clause id="HE8B614C53C9F46D185E0BB7C681506F8"><enum>(iii)</enum><header>Treatment of lesser amounts</header><text>In the case of a trust which is part of an eligible plan, such trust shall not be a qualified trust under this section unless such plan provides that, if a participant in the plan separates from the service covered by the plan and the nonforfeitable accrued benefit described in clause (ii) is not in excess of $1,000, the plan administrator shall (either separately or as part of the notice under section 402(f)) notify the participant that the participant is entitled to such benefit or attempt to pay the benefit directly to the participant.</text></clause><clause id="HB6F659EDC25645579628A67553CEE551"><enum>(iv)</enum><header>Transfers to Retirement Savings Lost and Found</header><text>If, after a plan administrator takes the action required under clause (iii), the participant does not—</text><subclause id="H1012803ADC4C4F6083078E24D213CE02"><enum>(I)</enum><text>within 6 months of the notification under such clause, make an election under subparagraph (A) or elect to receive a distribution of the benefit directly, or</text></subclause><subclause id="HD1D3D8B4581246D5AB939EE08312AEE1"><enum>(II)</enum><text>accept any direct payment made under such clause within 6 months of the attempted payment,</text></subclause><continuation-text continuation-text-level="clause">the plan administrator shall transfer the amount of such benefit to the Office of the Retirement Savings Lost and Found in accordance with section 7901. </continuation-text></clause><clause id="H50393745D87B4C92B8757DB5782D9B04"><enum>(v)</enum><header>Income tax treatment of transfers to Retirement Savings Lost and Found</header><text>For purposes of determining the income tax treatment of transfers to the Office of the Retirement Savings Lost and Found under clause (iv)—</text><subclause id="H767F5219220A4D10962D5FF009647A67"><enum>(I)</enum><text>such a transfer shall be treated as a transfer to an individual retirement plan under clause (i), and</text></subclause><subclause id="H8AA5175CEB7C4D6FBA1B7C49EDDC2ADA"><enum>(II)</enum><text>the distribution of such amounts by the Office of the Retirement Savings Lost and Found shall be treated as a distribution from an individual retirement plan.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H610F3FD80E3449BB863441D85D218C5D"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to vested benefits with respect to participants who separate from service connected to the plan in plan years beginning after the second December 31 occurring after the date of the enactment of this Act.</text></paragraph></subsection><subsection id="H9EE2F27D70E4485C93284B303C256E06"><enum>(d)</enum><header>Better reporting for mandatory transfers</header><paragraph id="HBBF8DBD5A77F404186CB8A22318FCC65"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/6057">section 6057(a)</external-xref> is amended—</text><subparagraph id="H6E323497BACA4B4DBC3F6F9DAFFDCB79"><enum>(A)</enum><text>in subparagraph (C)—</text><clause id="H315E1CB0BB3144E4BCB87C3EA2B07735"><enum>(i)</enum><text>by striking <quote>during such plan year</quote> in clause (i) and inserting <quote>during the plan year immediately preceding such plan year</quote>;</text></clause><clause id="H7EAEC391D11A46A98AE6B04AD36478AB"><enum>(ii)</enum><text>by adding <quote>and</quote> at the end of clause (i); and</text></clause><clause id="H0B34CBB4E1A84EF8B50D1336F1300C1D"><enum>(iii)</enum><text>by striking clause (iii);</text></clause></subparagraph><subparagraph id="HF51D18DF53184543BED40C326CE1124B"><enum>(B)</enum><text>by redesignating subparagraph (E) as subparagraph (G);</text></subparagraph><subparagraph id="H6F1D6B0D3B914E67BC691526144C2462"><enum>(C)</enum><text>by striking <quote>and</quote> at the end of subparagraph (D); and</text></subparagraph><subparagraph id="H929464D5672347E1920F93049902F45B"><enum>(D)</enum><text>by inserting after subparagraph (D) the following new subparagraphs:</text><quoted-block style="OLC" act-name="" id="H1973CD59279F4FA2B9F8719DC98B6C90"><subparagraph id="H947546C5739C4322BE7172D91EE6993E"><enum>(E)</enum><text>the name and taxpayer identifying number of each participant or former participant in the plan—</text><clause id="HEC4770737B8A4C9AA9556FC8774AF885"><enum>(i)</enum><text display-inline="yes-display-inline">who, during the current plan year or any previous plan year, was reported under subparagraph (C), and with respect to whom the benefits described in subparagraph (C)(ii) were fully paid during the plan year,</text></clause><clause id="HC18CEA74E8A8486C9AB105D1F63DD3FE"><enum>(ii)</enum><text>with respect to whom any amount was distributed under section 401(a)(31)(B) during the plan year, or</text></clause><clause id="HC93B513C417744309EE1DE06EB6ADD55"><enum>(iii)</enum><text>with respect to whom a deferred annuity contract was distributed during the plan year,</text></clause></subparagraph><subparagraph id="H7C0ABE7F6DC346A480EF1BF2217EEED3"><enum>(F)</enum><text>in the case of a participant or former participant to whom subparagraph (E) applies—</text><clause id="H38DD6C44D23B41CEAD9D3BA40BF6B154"><enum>(i)</enum><text>in the case of a participant described in clause (ii) thereof, the name and address of the designated trustee or issuer described in section 401(a)(31)(B)(i) and the account number of the individual retirement plan to which the amount was distributed, and</text></clause><clause id="H0F231DEBE13844C98BBF2D48C484F44E"><enum>(ii)</enum><text>in the case of a participant described in clause (iii) thereof, the name and address of the issuer of such annuity contract and the contract or certificate number, and</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="HC53D316506704096ACECC5C83226EA60"><enum>(2)</enum><header>Rules relating to direct trustee-to-trustee transfers</header><subparagraph id="HEFD2872528E14AC7A253329C0AC403B9"><enum>(A)</enum><header>In general</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(e)</external-xref> is amended—</text><clause id="H6A1A8D84917C40BE90440778B1B3B0A8"><enum>(i)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">transfers</header-in-text>.—Any</quote> and inserting “<header-in-text level="paragraph" style="OLC">transfers</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="H051BC14DB5CB490A8F0C0308695785A6"><subparagraph id="H3F0A5983D9284A9C86BB350FFEC35E8E"><enum>(A)</enum><header>In general</header><text>Any</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></clause><clause id="H150C4E540E1544B49F8525BABD24DF77"><enum>(ii)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" act-name="" id="HE910FAF02FCC4855B1A0B585E31F7826"><subparagraph id="H0DF1F4BD2DA140738C573D832FA05297"><enum>(B)</enum><header>Notification of trustee</header><text>In the case of a distribution under section 401(a)(31)(B), the plan administrator shall notify the designated trustee or issuer described in clause (i) thereof that the transfer is a mandatory distribution required by such section.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="HCD0DE12309C84F5EB1CC20AA0A22D225"><enum>(B)</enum><header>Penalty</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/6652">section 6652</external-xref> is amended—</text><clause id="H4A1966D030CF4CCE96D21946627082C8"><enum>(i)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">to recipients</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subsection" style="OLC">or notification</header-in-text></quote>;</text></clause><clause id="H7F4B9BD01C3D4F86A538E67A09AA0C56"><enum>(ii)</enum><text>by striking <quote>402(f),</quote> and inserting <quote>402(f) or a notification as required by section 402(e)(6)(B),</quote>; and</text></clause><clause id="H2AB947D0467C41B5A9F6297937F500ED"><enum>(iii)</enum><text>by striking <quote>such written explanation</quote> and inserting <quote>such written explanation or notification</quote>.</text></clause></subparagraph><subparagraph id="H1552245201F14C4999F79FDB1E8F1BCC"><enum>(C)</enum><header>Reports</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408</external-xref> is amended—</text><clause id="H5DDF8A5715BE4BEA87140ACD2782C758"><enum>(i)</enum><text>by redesignating subparagraphs (A) and (B) of paragraph (2) as clauses (i) and (ii), respectively, and by moving such clauses 2 ems to the right;</text></clause><clause id="H7DF8F98E038C42318048576A18FEFDDA"><enum>(ii)</enum><text>by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and by moving such subparagraphs 2 ems to the right; and</text></clause><clause id="H35D59FCC631D4ED583DDA207AFECFA74"><enum>(iii)</enum><text>by striking <quote>as the Secretary prescribes</quote> in subparagraph (B)(ii), as so redesignated, and all that follows through <quote>a simple retirement account</quote> and inserting “as the Secretary prescribes.</text><quoted-block style="OLC" display-inline="no-display-inline" id="H666611CE0FE14FF3928D762CA51677CE"><paragraph id="H00AF58FEBBBA43B2B7A1DE9B6387C9A2"><enum>(3)</enum><header>Simple retirement accounts</header><text>In the case of a simple retirement account</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause id="HEA7CF4E209604879964BD0D51ACD28F2"><enum>(iv)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">Reports</header-in-text>.—The trustee of</quote> and inserting “<header-in-text level="subsection" style="OLC">Reports.—</header-in-text></text><quoted-block style="OLC" display-inline="no-display-inline" id="HA225FC6CF4B2419DB2E7FBF9AF5822E3"><paragraph id="H931937D2326844C3A77479ED1D47AD70"><enum>(1)</enum><header>In general</header><text>The trustee of</text></paragraph><after-quoted-block>;</after-quoted-block></quoted-block></clause><clause id="HB017BB61E75B44359D90266A902AAD22"><enum>(v)</enum><text>by striking <quote>under paragraph (2)</quote> in paragraph (3), as redesignated by clause (iii), and inserting <quote>under paragraph (1)(B)</quote>; and</text></clause><clause id="H1CBD75150A8C457DA129D7599DA3E512"><enum>(vi)</enum><text>by inserting after paragraph (1)(B)(ii), as redesignated by the preceding clauses, the following new paragraph:</text><quoted-block style="OLC" act-name="" id="H7B9FE545AA9E44CC807DB610E213D632"><paragraph id="HC81C65E167854C2B8DB5C464AD0D9F0E"><enum>(2)</enum><header>Mandatory distributions</header><text display-inline="yes-display-inline">In the case of an account, contract, or annuity to which a transfer under section 401(a)(31)(B) is made (including a transfer from the individual retirement plan to which the original transfer under such section was made to another individual retirement plan), the report required by this subsection for the year of the transfer and any year in which the information previously reported in subparagraph (B) changes shall—</text><subparagraph id="H01740F17607042D2ADD2B63B67CD136D"><enum>(A)</enum><text>identify such transfer as a mandatory distribution required by such section, and</text></subparagraph><subparagraph id="H4B3EF92FB4A14381802A74EA2C2B8D4E"><enum>(B)</enum><text>include the name, address, and taxpayer identifying number of the trustee or issuer of the individual retirement plan to which the amount is transferred.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph id="HE96C3E8934F34D0DA633F60D27EF1BCE"><enum>(3)</enum><header>Notification of participants upon separation</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/6057">section 6057</external-xref> is amended by inserting <quote>, and, with respect to any benefit of the individual subject to section 401(a)(31)(B), a notice of availability of, and the contact information for, the Retirement Savings Lost and Found established under section 208(a) of the <short-title>Enhancing American Retirement Now Act</short-title></quote> before the period at the end of the second sentence.</text></paragraph><paragraph id="H31BCBE2864584F36B3B6BD06108BE7A5"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to distributions made in, and returns and reports relating to, years beginning after the second December 31 occurring after the date of the enactment of this Act.</text></paragraph></subsection><subsection id="HF89B74CB013743A6A1A7CD818D5760F4"><enum>(e)</enum><header>Requirement of electronic filing</header><paragraph id="H8D26A501D7334DA2ADF4066B4DC6B09E"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/6011">section 6011(e)</external-xref> is amended—</text><subparagraph id="H2131AB132E184E23A0960F5619165C19"><enum>(A)</enum><text>by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and by moving such clauses 2 ems to the right;</text></subparagraph><subparagraph id="HD36B6CD35983437187061EB1C3B3A8E6"><enum>(B)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">regulations</header-in-text>.—In prescribing</quote> and inserting “<header-in-text level="paragraph" style="OLC">regulations</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="H692CD627820644A18AD49436E2BD4FB4"><subparagraph id="H1C3DD7FA4ABF4A938D969F6749C9A30E"><enum>(A)</enum><header>In general</header><text>In prescribing</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></subparagraph><subparagraph id="H3BE91D94EA67406D9CC76A2EE0FEE914"><enum>(C)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" act-name="" id="H27016B5BB56C4D2C8BC81861FE60BD59"><subparagraph id="H4EAD63BE7D27493084C6E614291BB717"><enum>(C)</enum><header>Exceptions</header><text>Notwithstanding subparagraph (A), the Secretary shall require returns or reports required under—</text><clause id="HABCA177F2B9C40E2A36F00EC18E7F432"><enum>(i)</enum><text>sections 6057, 6058, and 6059, and</text></clause><clause id="H6CF53EE55EC3430E9491FC44455EACB4"><enum>(ii)</enum><text>sections 408(i), 6041, and 6047 to the extent such return or report relates to the tax treatment of a distribution from a plan, account, contract, or annuity,</text></clause><continuation-text continuation-text-level="subparagraph">to be filed on magnetic media, but only with respect to persons who are required to file at least 50 returns during the calendar year which includes the first day of the plan year to which such returns or reports relate.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H11CF861E860C414AB734F360A2DE6735"><enum>(2)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to returns and reports relating to years beginning after the second December 31 occurring after the date of the enactment of this Act.</text></paragraph></subsection></section><section commented="no" id="id4F0D20255C044F60A6D95EDBBC83CA58"><enum>209.</enum><header>Roth plan distribution rules</header><subsection commented="no" id="id2c24c1a1038f4c51a3bd173751d78ba6"><enum>(a)</enum><header>In general</header><text>Subsection (d) of <external-xref legal-doc="usc" parsable-cite="usc/26/402A">section 402A</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idfdf0d3411ba04fed8444052c77ebabed"><paragraph commented="no" id="idbdd044a1b27048e6bbaf65c6162c5689"><enum>(5)</enum><header>Mandatory distribution rules not to apply before death</header><text>Notwithstanding sections 403(b)(10) and 457(d)(2), the following provisions shall not apply to any designated Roth account:</text><subparagraph commented="no" id="ide4b405dc600b4fbc83eba183bdd13742"><enum>(A)</enum><text>Section 401(a)(9)(A).</text></subparagraph><subparagraph commented="no" id="id855f371ae0ac49bcb59f05788704fc07"><enum>(B)</enum><text>The incidental death benefit requirements of section 401(a).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id5985b098bac74ef2a0fd810362849b0a"><enum>(b)</enum><header>Effective date</header><paragraph commented="no" id="id2749B104904148E0B4783D5F0846AC1B"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the amendment made by this section shall apply to taxable years beginning after December 31, 2023.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDEA17300E0684C2DB498EB727094A023"><enum>(2)</enum><header>Special rule</header><text>The amendment made by this section shall not apply to distributions which are required with respect to years beginning before January 1, 2024, but are permitted to be paid on or after such date.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H73701D20A6F0485799F641608E78B2E7"><enum>210.</enum><header>One-time election for qualified charitable distribution to split-interest entity; increase in qualified charitable distribution limitation</header><subsection commented="no" id="H6093BAAF30044811810396CD4DB670B9"><enum>(a)</enum><header>One-time election for qualified charitable distribution to split-interest entity</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/408">Section 408(d)(8)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H1FD3D30F44CE485F83CD75DC579B54FC"><subparagraph commented="no" id="H4A5EC13B3A424C158275288A0E701A7B"><enum>(F)</enum><header>One-time election for qualified charitable distribution to split-interest entity</header><clause commented="no" id="HC656C0FA3D3E42B398ED76B44D9390D6"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">A taxpayer may for a taxable year elect under this subparagraph to treat as meeting the requirement of subparagraph (B)(i) any distribution from an individual retirement account which is made directly by the trustee to a split-interest entity, but only if—</text><subclause commented="no" id="HD990858EE0784CA29F3CA8DF21CA015E"><enum>(I)</enum><text>an election is not in effect under this subparagraph for a preceding taxable year,</text></subclause><subclause id="HF8B6B19FAD4147AD8ED62902E470C442"><enum>(II)</enum><text>the aggregate amount of distributions of the taxpayer with respect to which an election under this subparagraph is made does not exceed $50,000, and</text></subclause><subclause commented="no" id="HAB12C55D29A8475C803C0D554860BA1C"><enum>(III)</enum><text>such distribution meets the requirements of clauses (iii) and (iv).</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H4E4D69AC95CE4DA98A692BB2569D4993"><enum>(ii)</enum><header>Split-interest entity</header><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <term>split-interest entity</term> means—</text><subclause commented="no" id="H816B1629F5B94752A3B61DF80C1ED4F9"><enum>(I)</enum><text>a charitable remainder annuity trust (as defined in section 664(d)(1)), but only if such trust is funded exclusively by qualified charitable distributions,</text></subclause><subclause commented="no" id="H16514D76E6144167A88B4C8F862A38D3"><enum>(II)</enum><text>a charitable remainder unitrust (as defined in section 664(d)(2)), but only if such unitrust is funded exclusively by qualified charitable distributions, or</text></subclause><subclause commented="no" id="H343B51FD009347F1AC7B98E32AD8DADE"><enum>(III)</enum><text>a charitable gift annuity (as defined in section 501(m)(5)), but only if such annuity is funded exclusively by qualified charitable distributions and commences fixed payments of 5 percent or greater not later than 1 year from the date of funding.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H6EC38CD3DB994517B63D8F91DEE02946"><enum>(iii)</enum><header>Contributions must be otherwise deductible</header><text display-inline="yes-display-inline">A distribution meets the requirements of this clause only if—</text><subclause commented="no" id="HA9D69EE9BF374099921FA206AE3F93A2"><enum>(I)</enum><text>in the case of a distribution to a charitable remainder annuity trust or a charitable remainder unitrust, a deduction for the entire value of the remainder interest in the distribution for the benefit of a specified charitable organization would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph), and</text></subclause><subclause commented="no" id="HE10F499A58C24F2E922D33D931AAAA78"><enum>(II)</enum><text display-inline="yes-display-inline">in the case of a charitable gift annuity, a deduction in an amount equal to the amount of the distribution reduced by the value of the annuity described in section 501(m)(5)(B) would be allowable under section 170 (determined without regard to subsection (b) thereof and this paragraph).</text></subclause></clause><clause commented="no" id="H438032B3EA184C1382FB4FAE044A563D"><enum>(iv)</enum><header>Limitation on income interests</header><text display-inline="yes-display-inline">A distribution meets the requirements of this clause only if—</text><subclause commented="no" id="H98970D55C1644936913A7DC65C372679"><enum>(I)</enum><text display-inline="yes-display-inline">no person holds an income interest in the split-interest entity other than the individual for whose benefit such account is maintained, the spouse of such individual, or both, and</text></subclause><subclause commented="no" id="H20A0A59DB6334A18A82CD2E019B2D41C"><enum>(II)</enum><text display-inline="yes-display-inline">the income interest in the split-interest entity is nonassignable.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H85B6FC770AF74DAF85BBA1A69950F886"><enum>(v)</enum><header>Special rules</header><subclause commented="no" display-inline="no-display-inline" id="H38DF6250B4624456904F2C197026E21A"><enum>(I)</enum><header>Charitable remainder trusts</header><text display-inline="yes-display-inline">Notwithstanding section 664(b), distributions made from a trust described in subclause (I) or (II) of clause (ii) shall be treated as ordinary income in the hands of the beneficiary to whom the annuity described in section 664(d)(1)(A) or the payment described in section 664(d)(2)(A) is paid.</text></subclause><subclause commented="no" display-inline="no-display-inline" id="H4AAFD4A11F89402782ABB740F77C56FF"><enum>(II)</enum><header>Charitable gift annuities</header><text display-inline="yes-display-inline">Qualified charitable distributions made to fund a charitable gift annuity shall not be treated as an investment in the contract for purposes of section 72(c).</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H344CF478B5E24BBF9EB2086A3F665CFC"><enum>(b)</enum><header>Inflation adjustment</header><text>Section 408(d)(8), as amended by subsection (a), is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC717996EF9E742DDAE2FDCCB17B64E5E"><subparagraph id="H65C4C9174DC9472EB2DB017F071EA42F"><enum>(G)</enum><header>Inflation adjustment</header><clause id="H0870FAFCD097444EA0FEB819FDF36648"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of any taxable year beginning after 2023, each of the dollar amounts in subparagraphs (A) and (F) shall be increased by an amount equal to—</text><subclause id="H1BA75B14A8BF4906B5A58E1EDC085D43"><enum>(I)</enum><text display-inline="yes-display-inline">such dollar amount, multiplied by</text></subclause><subclause id="H80A4A18773474BA3B0AEB799BC4272AD"><enum>(II)</enum><text display-inline="yes-display-inline">the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2022</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subclause></clause><clause id="H2C96DC012EB6431B823F31BBB1214D4B"><enum>(ii)</enum><header>Rounding</header><text display-inline="yes-display-inline">If any dollar amount increased under clause (i) is not a multiple of $1,000, such dollar amount shall be rounded to the nearest multiple of $1,000.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H67D5EA5E46014EC7AD4D883E84E3B00B"><enum>(c)</enum><header>Effective date</header><text display-inline="yes-display-inline">The amendment made by this section shall apply to distributions made in taxable years beginning after the date of the enactment of this Act. </text></subsection></section><section id="idCBBECB215DD445A5A501D5A23D16361E"><enum>211.</enum><header>Exception to penalty on early distributions from qualified plans for individuals with a terminal illness</header><subsection id="idACF805C8FB734BB09D9106B36273CA83"><enum>(a)</enum><header>In general</header><text>Section 72(t)(2), as amended by this Act, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3C261AE37682467F8B62A35178222425"><subparagraph id="id61EE9103868444788D4B7CC649F63C32"><enum>(K)</enum><header>Terminal illness</header><clause id="id79A63D98E8934323B9C61264BAA67E3B"><enum>(i)</enum><header>In general</header><text>Distributions which are made to the employee who is a terminally ill individual on or after the date on which such employee has been certified by a physician as having a terminal illness.</text></clause><clause id="id24F411F6A596421BBF38F742B0FD1EB8"><enum>(ii)</enum><header>Definition</header><text>For purposes of this subparagraph, the term <term>terminally ill individual</term> has the same meaning given such term under section 101(g)(4)(A), except that <quote>84 months</quote> shall be substituted for <quote>24 months</quote>.</text></clause><clause id="id9D7F30C06DD54BADA7A5944659A4BF5E"><enum>(iii)</enum><header>Documentation</header><text>For purposes of this subparagraph, an employee shall not be considered to be a terminally ill individual unless such employee furnishes sufficient evidence to the plan administrator in such form and manner as the Secretary may require.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id3FAE7EFD4C82463884818C9EA203022F"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to distributions made after the date of the enactment of this Act. </text></subsection></section><section commented="no" display-inline="no-display-inline" id="idC97A417027024606A3BC73F69F707F30"><enum>212.</enum><header>Surviving spouse election to be treated as employee</header><subsection id="id26c856477e9b47998dcfd89ad2bafc82"><enum>(a)</enum><header>In general</header><text>Section 401(a)(9)(B)(iv), as amended by this Act, is further amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id5C01347485E940508CD99560261191C2"><clause id="id7beb743883d94365a3629a3c049fb766"><enum>(iv)</enum><header>Special rule for surviving spouse of employee</header><text>If the designated beneficiary referred to in clause (iii)(I) is the surviving spouse of the employee and the surviving spouse elects the treatment in this clause—</text><subclause id="idd70633b87187415abcf10103a2239aba"><enum>(I)</enum><text>the regulations referred to in clause (iii)(II) shall treat the surviving spouse as if the surviving spouse were the employee,</text></subclause><subclause id="id86c6adca384245b6b48e4dc519a71b05"><enum>(II)</enum><text>the date on which the distributions are required to begin under clause (iii)(III) shall not be earlier than the date on which the employee would have attained the applicable age, and</text></subclause><subclause id="id0f172d4a6d754d828f788b6a9eeb0475"><enum>(III)</enum><text>if the surviving spouse dies before the distributions to such spouse begin, this subparagraph shall be applied as if the surviving spouse is the employee.</text></subclause><continuation-text continuation-text-level="clause">An election described in this clause shall be made at such time and in such manner as prescribed by the Secretary, shall include a timely notice to the plan administrator, and once made may not be revoked except with the consent of the Secretary.</continuation-text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id340faacfb73041d183b23b44a1d567bb"><enum>(b)</enum><header>Extension of election of at least as rapidly rule</header><text>The Secretary shall amend Q&A–5(a) of Treasury Regulation section 1.401(a)(9)-5 (or any successor regulation thereto) to provide that if the surviving spouse is the employee’s sole designated beneficiary and the spouse elects treatment under section 401(a)(9)(B)(iv), then the applicable distribution period for distribution calendar years after the distribution calendar year including the employee’s date of death is determined under the uniform lifetime table.</text></subsection><subsection id="idb637129133454353b3e44ad51a051b26"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to calendar years beginning after December 31, 2023.</text></subsection></section><section commented="no" section-type="subsequent-section" id="id6A52F308180048839C8E067E945D95C6"><enum>213.</enum><header>Long-term care contracts purchased with retirement plan distributions</header><subsection commented="no" id="idb12f633d92594acf9e5a26d32dc2e76c"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)</external-xref> is amended by inserting after paragraph (38) the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idBD4F14F7959F448890CD083536B82FD4"><paragraph commented="no" id="id71496F19D02B4028AEF49742381E60E9"><enum>(39)</enum><header>Qualified long-term care distributions</header><subparagraph commented="no" id="idFE1C5ABF08C74194891B6B297CE96259"><enum>(A)</enum><header>In general</header><text>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 qualified long-term care distributions.</text></subparagraph><subparagraph commented="no" id="idAD8C08057A5A4DBAAEB68990152787E5"><enum>(B)</enum><header>Qualified long-term care distribution</header><text>For purposes of this paragraph—</text><clause commented="no" id="id654ED995C2844875A774B80AB244F999"><enum>(i)</enum><header>In general</header><text>The term <term>qualified long-term care distribution</term> means so much of the distributions made during the taxable year as does not exceed, in the aggregate, the lesser of—</text><subclause commented="no" id="id8650D5158006412DA77F4FF645050E34"><enum>(I)</enum><text>the amount paid by or assessed to the participant during the taxable year for or with respect to certified long-term care insurance for the participant or the participant’s spouse (or other family member of the participant as provided by the Secretary by regulation), or</text></subclause><subclause commented="no" id="id271275CFC7274DB29F85A58FAD4CDDCF"><enum>(II)</enum><text>$2,500.</text></subclause></clause><clause commented="no" id="id755323AA00744D6996BD75B9F55C09C2"><enum>(ii)</enum><header>Adjustment for inflation</header><text>In the case of taxable years beginning after December 31, 2024, the $2,500 amount in clause (i)(II) shall be increased by an amount equal to—</text><subclause commented="no" id="id27698205DEE641F896CDE7039338A3E2"><enum>(I)</enum><text>such dollar amount, multiplied by</text></subclause><subclause commented="no" id="id3AA95E078E534EFE94625D4E350B4360"><enum>(II)</enum><text>the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting <quote>calendar year 2023</quote> for <quote>calendar year 2016</quote> in subparagraph (A)(ii) thereof.</text></subclause><continuation-text continuation-text-level="clause">If any increase under the preceding sentence is not a multiple of $100, such amount shall be rounded to the nearest multiple of $100.</continuation-text></clause></subparagraph><subparagraph id="id8e4a1b5098b4483c88f0bf0256ea6991"><enum>(C)</enum><header>Certified long-term care insurance</header><text>The term <term>certified long-term care insurance</term> means—</text><clause commented="no" id="id74AA9002862844F684EBACDCEB52379D"><enum>(i)</enum><text>a qualified long-term care insurance contract (as defined in section 7702B(b)) covering qualified long-term care services (as defined in section 7702B(c)),</text></clause><clause commented="no" id="id80A339B8BD174568BEECBB31363A7F66"><enum>(ii)</enum><text>coverage of the risk that an insured individual would become a chronically ill individual (within the meaning of section 101(g)(4)(B)) under a rider or other provision of a life insurance contract which satisfies the requirements of section 101(g)(3) (determined without regard to subparagraph (D) thereof), or</text></clause><clause commented="no" id="id484ACDD42032489891EAE00241189072"><enum>(iii)</enum><text>coverage of qualified long-term care services (as so defined) under a rider or other provision of an insurance or annuity contract which is treated as a separate contract under section 7702B(e) and satisfies the requirements of section 7702B(g),</text></clause><continuation-text continuation-text-level="subparagraph">if such coverage provides meaningful financial assistance in the event the insured needs home-based or nursing home care. For purposes of the preceding sentence, coverage shall not be deemed to provide meaningful financial assistance unless benefits are adjusted for inflation and consumer protections are provided, including protection in the event the coverage is terminated.</continuation-text></subparagraph><subparagraph commented="no" id="id92C13FA0D5DC4905AF606E31EF12A117"><enum>(D)</enum><header>Distributions must otherwise be includible</header><text>Rules similar to the rules of section 402(l)(3) shall apply for purposes of this paragraph. </text></subparagraph><subparagraph commented="no" id="id31D0A854418641A4AA21DF6F4A84D642"><enum>(E)</enum><header>Long-term care premium statement</header><clause commented="no" id="id3CB3FF24D89C4F88B2640D04002A5F70"><enum>(i)</enum><header>In general</header><text>No distribution shall be treated as a qualified long-term care distribution unless a long-term care premium statement with respect to the participant has been filed with the plan.</text></clause><clause commented="no" id="id4969EA455A994338BC99AA3F207822EE"><enum>(ii)</enum><header>Long-term care premium statement</header><text>For purposes of this paragraph, a long-term care premium statement is a statement provided by the issuer of long-term care coverage, upon request by the owner of such coverage, which includes—</text><subclause commented="no" id="idAB5373984D2C44AEA3D0567756FDF812"><enum>(I)</enum><text>the name and taxpayer identification number of such issuer,</text></subclause><subclause commented="no" id="id63B4B9EE035B445FA6834BC4F4E2E949"><enum>(II)</enum><text>a statement that the coverage is certified long-term care insurance,</text></subclause><subclause commented="no" id="id27F4DA6624EE4E3E97429845CECAA313"><enum>(III)</enum><text>identification of the participant as the owner of such coverage,</text></subclause><subclause commented="no" id="idB1F28D6BC36E488DA3E2A3A0F1A86C86"><enum>(IV)</enum><text>identification of the individual covered and such individual's relationship to the participant,</text></subclause><subclause commented="no" id="id90BCD87C534A4A95BF5FE787CB7E7E55"><enum>(V)</enum><text>the premiums owed for the coverage for the calendar year, and</text></subclause><subclause commented="no" id="id9D8A8443B3E3428090972CE350A42CDE"><enum>(VI)</enum><text>such other information as the Secretary may require.</text></subclause></clause><clause commented="no" id="id9B761028BF2042D2AC29409D14BC88E4"><enum>(iii)</enum><header>Filing with Secretary</header><text>A long-term care premium statement will be accepted only if the issuer has completed a disclosure to the Secretary for the specific coverage product to which the statement relates. Such disclosure shall identify the issuer, type of coverage, and such other information as the Secretary may require which is included in the filing of the product with the applicable State authority.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="idCEA0E6BA6FBE4708A17DF82659FEEEE8"><enum>(b)</enum><header>Conforming amendments</header><paragraph commented="no" id="id1E5230C73E704A1A9CCBD6CF2DA7743F"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(2)(B)(i)</external-xref> is amended by striking <quote>or</quote> at the end of subclause (V), by adding <quote>or</quote> at the end of subclause (VI), and by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA4A20A121D724426919ACD198618EFB4"><subclause commented="no" id="id10EF7EFEDA12402DAB370902BDB12A82"><enum>(VII)</enum><text>as provided in section 401(a)(39),</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idBBB94051C4144100951C5B560C41F427"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(a)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idAE88BA29A58E4887A35667D6F398499D"><paragraph commented="no" id="id685F79E7F708471CB4778E406F449781"><enum>(6)</enum><header>Qualified long-term care distributions</header><text>An annuity contract shall not fail to be subject to this subsection solely by reason of allowing distributions to which section 401(a)(39) applies.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id835B3E331B4F466D819AAB0992D64318"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(b)(11)</external-xref> is amended by striking <quote>or</quote> at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting <quote>, or</quote>, and by inserting after subparagraph (D) the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE4239EBCBCB04F3F8CC26A1F9EE9215A"><subparagraph commented="no" id="id88B29BB1D4834BA98438B5C993B7761F"><enum>(E)</enum><text>for distributions to which section 401(a)(39) applies.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="idDC40774950D2408A9DFE660C38EC03E6"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/457">Section 457(d)(1)(A)</external-xref> is amended by striking <quote>or</quote> at the end of clause (iii), by striking the comma at the end of clause (iv) and inserting <quote>, or</quote>, and by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id1DD0238F18E24E7D832625B461535F15"><clause commented="no" display-inline="no-display-inline" id="idD600AE6E8243440C81A8D4011D21E609"><enum>(v)</enum><text display-inline="yes-display-inline">as provided in section 401(a)(39),</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="id88C82C67F0B2447881385417B0210120"><enum>(c)</enum><header>Exemption from additional tax on early distributions</header><text>Section 72(t)(2), as amended by this Act, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id15986A2826BB4807AE941C133D0182FC"><subparagraph id="id5EE92D9E2E324C26AFBC8788E6C98540"><enum>(L)</enum><header>Qualified long-term care distributions</header><clause id="idBA6154D291E34D78A942C02078E67103"><enum>(i)</enum><header>In general</header><text>Any qualified long-term care distribution which meets the requirements of section 401(a)(39).</text></clause><clause id="id979F5875D38343AFA8D9C56E3DA37A71"><enum>(ii)</enum><header>Exception</header><text>If the individual covered by the long-term care coverage to which such distribution relates is the spouse of the participant in the plan, clause (i) shall apply only if the participant and the participant's spouse file a joint return.</text></clause><clause id="id70df88d0c445452999a88e36f80ce9c9"><enum>(iii)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text>For purposes of sections 401(a)(31), 402(f), and 3405, a qualified long-term care distribution shall not be treated as an eligible rollover distribution.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id35A949196FEB4ACAA65E3694036481C6"><enum>(d)</enum><header>Reporting</header><paragraph commented="no" id="idD721699DD8E64410930805937FFC4BD2"><enum>(1)</enum><header>In general</header><text>Subpart B of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id31484911580647FBB1287CEA88E0E584"><section commented="no" id="id63c28e57bd8049058c55d5a9ba1a7d39"><enum>6050Z.</enum><header>Reports relating to long-term care premium statements</header><subsection commented="no" id="idded3f3dd396c428a870c09ccacba2130"><enum>(a)</enum><header>Requirement of reporting</header><text>Any issuer of certified long-term care insurance (as defined in section 401(a)(39)(C)) who provides a long-term care premium statement to any purchaser pursuant to section 401(a)(39)(E) for a calendar year, shall make a return not later than February 1 of the succeeding calendar year, according to forms or regulations prescribed by the Secretary, setting forth with respect to each such purchaser—</text><paragraph commented="no" id="idED86B2FC12104FF586ABA39C78680268"><enum>(1)</enum><text>the name and taxpayer identification number of such issuer,</text></paragraph><paragraph commented="no" id="idF148DFDDBCAC454FAD391BBF44A81D6F"><enum>(2)</enum><text>a statement that the coverage is certified long-term care insurance as defined in section 401(a)(39)(C),</text></paragraph><paragraph commented="no" id="idCCD606176E50433688EB7F076A44DE11"><enum>(3)</enum><text>the name of the owner of such coverage,</text></paragraph><paragraph commented="no" id="idC5EFB5ACFA504B3DA5499AB80921EA4E"><enum>(4)</enum><text>identification of the individual covered and such individual's relationship to the owner,</text></paragraph><paragraph commented="no" id="id2DECB8EE990D46C682B24BD0A86B0783"><enum>(5)</enum><text>the premiums paid for the coverage for the calendar year, and</text></paragraph><paragraph commented="no" id="idD2DA46BE4BB843DFAE4C843E1280540D"><enum>(6)</enum><text>such other information as the Secretary may require.</text></paragraph></subsection><subsection commented="no" id="id85aa4f75bb5746828786d4f5bf9f0a81"><enum>(b)</enum><header>Statement to be furnished to persons with respect to whom information is required</header><text>Every person required to make a return under subsection (a) shall furnish to each individual whose name is required to be set forth in such return a written statement showing—</text><paragraph commented="no" id="id1ebbf0b6df2441c0ade568d589144387"><enum>(1)</enum><text>the name, address, and phone number of the information contact of the issuer of the contract or coverage, and</text></paragraph><paragraph commented="no" id="id784eeee9a9b1418f90f2e8162eff386d"><enum>(2)</enum><text>the aggregate amount of premiums and charges paid under the contract or coverage covering the insured individual during the calendar year.</text></paragraph><continuation-text commented="no" continuation-text-level="subsection">The written statement required under the preceding sentence shall be furnished to the individual or individuals on or before January 31 of the year following the calendar year for which the return required under subsection (a) was required to be made.</continuation-text></subsection><subsection commented="no" id="ida1d88f8b6a29462499f2e84e433cc8c3"><enum>(c)</enum><header>Contracts or coverage covering more than one insured</header><text>In the case of contracts or coverage covering more than one insured, the return and statement required by subsections (a) and (b) shall identify only the portion of the premium that is properly allocable to the insured in respect of whom the return or statement is made.</text></subsection><subsection commented="no" id="id87120A89DF3D4660B391FB25D635E622"><enum>(d)</enum><header>Statement to be furnished on request</header><text>If any individual to whom a return is required to be furnished under subsection (b) requests that such a return be furnished at any time before the close of the calendar year, the person required to make the return under subsection (b) shall comply with such request and shall furnish to the Secretary at such time a copy of the return so provided.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" id="id981BE228F6254D69AF669466A1488F73"><enum>(2)</enum><header>Penalties</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6724">Section 6724(d)</external-xref> is amended—</text><subparagraph commented="no" id="id1D8B860A5D6F4F5F8915CFA1C832B54A"><enum>(A)</enum><text>in paragraph (1)(B), by adding <quote>or</quote> at the end of clause (xxvii) and by inserting after such clause the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idEEF524A9F8E24EE2A8A5483E581B48A4"><clause commented="no" id="idE5C8DD2C35954B5A9D2F37F7C61D48B6"><enum>(xxviii)</enum><text>section 6050Z (relating to reports relating to long-term care premium statements), and</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id01D58251636440D7B00BDC19EE343D57"><enum>(B)</enum><text>in paragraph (2)—</text><clause commented="no" id="id3309F067AE874E6CA9737B3CAC26CC67"><enum>(i)</enum><text>by redesignating subparagraph (JJ), relating to section 6050Y, as subparagraph (KK) and moving such subparagraph to the position immediately after subparagraph (JJ), relating to section 6226(a)(2),</text></clause><clause commented="no" id="id44906CFCAB5A42419D22B553B9C4DE69"><enum>(ii)</enum><text>by striking <quote>or</quote> at the end of subparagraph (II),</text></clause><clause commented="no" id="idB60A7BE5EDDE4DA497E7068D940FB581"><enum>(iii)</enum><text>by striking the period at the end of subparagraph (JJ), relating to section 6226(a)(2), and inserting a comma, </text></clause><clause commented="no" id="idA18DA13876C84F1DAEC1465C2C855D6C"><enum>(iv)</enum><text>by striking the period at the end of subparagraph (KK), as so redesignated, and inserting <quote>, or</quote>, and</text></clause><clause commented="no" id="idD3437C31A4C3429C89471895F2152D5E"><enum>(v)</enum><text>by inserting after subparagraph (KK), as so redesignated, the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id551F38A300774CB6A90F78A91763C2E5"><subparagraph commented="no" id="id691235C558334A8084F24B2FAEBCD208"><enum>(LL)</enum><text>section 6050Z (relating to reports relating to long-term care premium statements).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph></paragraph><paragraph commented="no" id="id8362E0A45395404F8F096A9226EC9A36"><enum>(3)</enum><header>Clerical amendment</header><text>The table of sections for subpart B of part III of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/61">chapter 61</external-xref> is amended by adding after the item relating to section 6050Y the following new item:</text><quoted-block style="OLC" id="id8a27b3d8-1dd8-4ad2-8e83-8dcb0b69bf5a"><toc><toc-entry level="section" idref="id63c28e57bd8049058c55d5a9ba1a7d39">Sec. 6050Z. Reports relating to long-term care premium statements.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB5F375A8AEB746E5B4E85AB8F97EA049"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after the date which is 3 years after the date of the enactment of this Act. </text></subsection><subsection id="id17d7ce532f524e0898dfcea18ee172e0"><enum>(f)</enum><header>Disclosure to Treasury of long-term care insurance products</header><text>The Secretary of the Treasury (or the Secretary's delegate) shall issue such forms and guidance as are necessary to collect the filing required by <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(39)(E)(iii)</external-xref> of the Internal Revenue Code of 1986, as added by this section.</text></subsection><subsection id="id130aa6340dce4c0faf3aa0fb8bd5d8fb"><enum>(g)</enum><header>Treasury website</header><text>The Secretary of the Treasury (or the Secretary's delegate) shall maintain a website that discloses information regarding long-term care insurance policies, including common policy features, factors to consider in selecting coverage levels, consumer protections, tax rules for premiums and benefits, and the special tax and distribution rules applicable to certified long-term care insurance (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(a)(39)(C)</external-xref> of the Internal Revenue Code of 1986). Such website shall also identify issuers of certified long-term care insurance (as so defined) by State, issuer contact information, and other information specific to an issuer and its long-term care insurance which is included in the issuer's filing for such insurance with the applicable State authority and disclosed to the Secretary. </text></subsection></section><enum>III</enum><header>Public safety officers and military</header><section section-type="subsequent-section" id="H385BB6F00EBA49078A93EEBE88DC5620"><enum>301.</enum><header>Military spouse retirement plan eligibility credit for small employers</header><subsection id="HA00900CDF9EA4372B654293E5D1AF7C3"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HE1F31A7B1DB14868882FD5C644485658"><section id="HDBC785BB32FD4AE79B0A99F89F424D39"><enum>45U.</enum><header>Military spouse retirement plan eligibility credit for small employers</header><subsection id="H3E585B6DF2F24A8794B24C57C1F6683D"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of section 38, in the case of any eligible small employer, the military spouse retirement plan eligibility credit determined under this section for any taxable year is an amount equal to the sum of—</text><paragraph id="H79BE4636431E40FB915F01B3EC58BCAF"><enum>(1)</enum><text>$200 with respect to each military spouse who is an employee of such employer and who is eligible to participate in an eligible defined contribution plan of such employer at any time during such taxable year, plus</text></paragraph><paragraph id="H723FD065D22C407C8633C38C193FA34E"><enum>(2)</enum><text display-inline="yes-display-inline">so much of the contributions made by such employer to all such plans with respect to such employee during such taxable year as do not exceed $300.</text></paragraph></subsection><subsection id="HB6D1DE4834C44C4C8D74CAEAC77627C6"><enum>(b)</enum><header>Limitation</header><text>An individual shall only be taken into account as a military spouse under subsection (a) for the taxable year which includes the date on which such individual began participating in the eligible defined contribution plan of the employer and the 2 succeeding taxable years.</text></subsection><subsection id="H18759B2E26614756BBB1B8C58F86D207"><enum>(c)</enum><header>Eligible small employer</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>eligible small employer</term> means an eligible employer (as defined in section 408(p)(2)(C)(i)(I).</text></subsection><subsection id="H940DCBD1DA204FB79F3EAB5682D13CE7"><enum>(d)</enum><header>Military spouse</header><text>For purposes of this section—</text><paragraph id="HC6897BEB24014CD9840FD24280A58461"><enum>(1)</enum><header>In general</header><text>The term <term>military spouse</term> means, with respect to any employer, any individual who is married (within the meaning of section 7703 as of the first date that the employee is employed by the employer) to an individual who is a member of the uniformed services (as defined section 101(a)(5) of title 10, United States Code). For purposes of this section, an employer may rely on an employee’s certification that such employee’s spouse is a member of the uniformed services if such certification provides the name, rank, and service branch of such spouse.</text></paragraph><paragraph id="H5707D07B3638430BB01C2C867A1DB620"><enum>(2)</enum><header>Exclusion of highly compensated employees</header><text display-inline="yes-display-inline">With respect to any employer, the term <term>military spouse</term> shall not include any individual if such individual is a highly compensated employee of such employer (within the meaning of section 414(q)).</text></paragraph></subsection><subsection id="HE484B4980B4F4DA6A5A270015CEE082A"><enum>(e)</enum><header>Eligible defined contribution plan</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>eligible defined contribution plan</term> means, with respect to any eligible small employer, any defined contribution plan (as defined in section 414(i)) of such employer if, under the terms of such plan—</text><paragraph id="H175BE6F50E0B45CEB0D40F2D2DC323A2"><enum>(1)</enum><text>military spouses employed by such employer are eligible to participate in such plan not later than the date which is 2 months after the date on which such individual begins employment with such employer, and</text></paragraph><paragraph id="HC9B6675B417A46CAAFE5BEC1C89F871E"><enum>(2)</enum><text>military spouses who are eligible to participate in such plan—</text><subparagraph id="H8AEA8B2A10DA4F66A16A629EB4E2E058"><enum>(A)</enum><text>are immediately eligible to receive an amount of employer contributions under such plan which is not less the amount of such contributions that a similarly situated participant who is not a military spouse would be eligible to receive under such plan after 2 years of service, and</text></subparagraph><subparagraph id="H9D36F87E0B99443794C160E03612F24E"><enum>(B)</enum><text display-inline="yes-display-inline">immediately have a nonforfeitable right to the employee’s accrued benefit derived from employer contributions under such plan.</text></subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="H9267B49555D347719B149203B9C784D0"><enum>(f)</enum><header>Aggregation rule</header><text>All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as one employer for purposes of this section.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="H26ED2BE4025F4F44A2E8BF1118053F01"><enum>(b)</enum><header>Credit allowed as part of general business credit</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/38">Section 38(b)</external-xref> is amended by striking <quote>plus</quote> at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7759D13C90D946D0A278BFFF198DCD13"><paragraph commented="no" id="HBCE6D05625C140508FB3253ECE5A7239"><enum>(34)</enum><text display-inline="yes-display-inline">in the case of an eligible small employer (as defined in section 45U(c)), the military spouse retirement plan eligibility credit determined under section 45U(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H0277A71BEBE542F7B5A2BE6C21169F35"><enum>(c)</enum><header>Specified credit for purposes of certified professional employer organizations</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/3511">Section 3511(d)(2)</external-xref> is amended by redesignating subparagraphs (F), (G), and (H) as subparagraphs (G), (H), and (I), respectively, and by inserting after subparagraph (E) the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC93B0E7BCC744678B702B7CAC0514562"><subparagraph id="HDED47A64B81945999F5280097ADA26BA"><enum>(F)</enum><text display-inline="yes-display-inline">section 45U (military spouse retirement plan eligibility credit),</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HC900C33215BA45128695703D56D681ED"><enum>(d)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by adding at the end the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5CD9B87127E3417783D7C64BDF50C30E"><toc container-level="quoted-block-container" idref="HE1F31A7B1DB14868882FD5C644485658" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"><toc-entry idref="HDBC785BB32FD4AE79B0A99F89F424D39" level="section">Sec. 45U. Military spouse retirement plan eligibility credit for small employers.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H3A3E8AB3EE7D44449B36B94E8DBC522C"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.</text></subsection></section><section id="id1d9e8eb8f14241359ba13cc23d104a15"><enum>302.</enum><header>Distributions to firefighters</header><subsection id="id499035d78f634fd0a21c219906c3c84b"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(10)</external-xref> is amended by striking <quote>414(d))</quote> and inserting <quote>414(d)) or a distribution from a plan described in clause (iii), (iv), or (vi) of section 402(c)(8)(B) to an employee who provides firefighting services</quote>.</text></subsection><subsection id="id916727bccc3a4611882a1e4c1c8e3a7a"><enum>(b)</enum><header>Conforming amendment</header><text>The heading of paragraph (10) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)</external-xref> is amended by striking <quote><header-in-text level="paragraph" style="OLC">in governmental plans</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">and private sector firefighters</header-in-text></quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idb28b8998770f48caa0e595e82c481ee6"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to distributions made after the date of the enactment of this Act. </text></subsection></section><section id="H101EC04C0CA74565B8A529FD2662CDE0"><enum>303.</enum><header>Exclusion of certain disability-related first responder retirement payments</header><subsection id="H9802CB43EA49456FB22D7234D7137661"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Part III of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after section 139B the following new section:</text><quoted-block style="OLC" id="H601AEB1F27D74B1195741CFBDC16960A"><section id="HFC4217B5E0CD437FADD47AB1AE0DC226"><enum>139C.</enum><header>Certain disability-related first responder retirement payments</header><subsection id="HF2B364B5622941B29C1F2586B15898B0"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">In the case of an individual who receives qualified first responder retirement payments for any taxable year, gross income shall not include so much of such payments as do not exceed the annualized excludable disability amount with respect to such individual.</text></subsection><subsection id="HAC8FDB2D7DCB4C5E86B117755D19C933"><enum>(b)</enum><header>Qualified first responder retirement payments</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualified first responder retirement payments</term> means, with respect to any taxable year, any pension or annuity which but for this section would be includible in gross income for such taxable year and which is received—</text><paragraph id="HFFE001B715F343D08F6429A52E4CF7B1"><enum>(1)</enum><text>from a plan described in clause (iii), (iv), (v), or (vi) of section 402(c)(8)(B), and</text></paragraph><paragraph id="H6B57917388E24C57BC9386CFE91F7ED8"><enum>(2)</enum><text display-inline="yes-display-inline">in connection with such individual’s qualified first responder service.</text></paragraph></subsection><subsection id="H06178E5D98514902A0900E41FC0830B7"><enum>(c)</enum><header>Annualized excludable disability amount</header><text display-inline="yes-display-inline">For purposes of this section—</text><paragraph id="HF24FEECEC2B74F18917E7194FDEB9B9F"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>annualized excludable disability amount</term> means, with respect to any individual, the service-connected excludable disability amounts which are properly attributable to the 12-month period immediately preceding the date on which such individual attains retirement age.</text></paragraph><paragraph id="H969D255329854BA9B2034473E5B1E5B3"><enum>(2)</enum><header>Service-connected excludable disability amount</header><text>The term <term>service-connected excludable disability amount</term> means periodic payments received by an individual which—</text><subparagraph id="HAF9692C67B7B46B88CB818A662E94762"><enum>(A)</enum><text display-inline="yes-display-inline">are not includible in such individual’s gross income under section 104(a)(1),</text></subparagraph><subparagraph id="HAE9A94945AC641EE896C203A13204A6D"><enum>(B)</enum><text display-inline="yes-display-inline">are received in connection with such individual’s qualified first responder service, and</text></subparagraph><subparagraph id="HF0A00B38B2D1489B9642F2AF43ECFEB2"><enum>(C)</enum><text>terminate when such individual attains retirement age.</text></subparagraph></paragraph><paragraph commented="no" id="H117AEAEDC04F407BAD3BD6F13A151F36"><enum>(3)</enum><header>Special rule for partial-year payments</header><text>In the case of an individual who only receives service-connected excludable disability amounts properly attributable to a portion of the 12-month period described in paragraph (1), such paragraph shall be applied by multiplying such amounts by the ratio of 365 to the number of days in such period to which such amounts were properly attributable.</text></paragraph></subsection><subsection id="HCD51AAD1C0304917ADB0B99C72F380E3"><enum>(d)</enum><header>Qualified first responder service</header><text display-inline="yes-display-inline">For purposes of this section, the term <term>qualified first responder service</term> means service as a law enforcement officer, firefighter, paramedic, or emergency medical technician.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection display-inline="no-display-inline" id="HB9A0B3F2C7E94281BBB8EB73FA5F7B89"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections for part III of subchapter B of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> is amended by inserting after the item relating to section 139B the following new item:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HC2C23F9C767C4B31B919F78460089CE3"><toc regeneration="no-regeneration"><toc-entry level="section">Sec. 139C. Certain disability-related first responder retirement payments.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H8809EFB057D14596B30F15476F351152"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts received with respect to taxable years beginning after the date of the enactment of this Act.</text></subsection></section><section id="HB2D9D57DD4364B668C21E0FC3FABBC34"><enum>304.</enum><header>Repeal of direct payment requirement on exclusion from gross income of distributions from governmental plans for health and long-term care insurance</header><subsection id="H3C65CC574F994529B00D2BADCE7621B9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/402">Section 402(l)(5)(A)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5AE1C50F190745358DD7D1CB0BAFDCD3"><subparagraph id="HC9288CD2C6A2440E81AD185EC5BA6161"><enum>(A)</enum><header>Direct payment to insurer permitted</header><clause id="id611B6854B5E649D28A2F0E9A205698E0"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">Paragraph (1) shall apply to a distribution without regard to whether payment of the premiums is made directly to the provider of the accident or health plan or qualified long-term care insurance contract by deduction from a distribution from the eligible retirement plan, or is made to the employee.</text></clause><clause id="idFAD3F717AA6E43D7A32DFF5CA5F74DA1"><enum>(ii)</enum><header>Reporting</header><text display-inline="yes-display-inline">In the case of a payment made to the employee as described in clause (i), the employee shall include with the return of tax for the taxable year in which the distribution is made an attestation that the distribution does not exceed the amount paid by the employee for qualified health insurance premiums for such taxable year.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H896862C73975477B8C3D248A0986F1D8"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to distributions made after the date of the enactment of this Act.</text></subsection></section><section section-type="subsequent-section" id="id11A9755C4F464896B4134B5840C91F2B"><enum>305.</enum><header>Modification of eligible age for exemption from early withdrawal penalty</header><subsection id="id86207A947C4D4712B99DAB2A7EE4FCFB"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of section 72(t)(10), as amended by this Act, is further amended by striking <quote>age 50</quote> and inserting <quote>age 50 or 25 years of service under the plan, whichever is earlier</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id0B5CF3FBF9524BDF98E22D2CA3A8EE96"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to distributions made after the date of the enactment of this Act. </text></subsection></section><section section-type="subsequent-section" id="idB39EF1ABD0954845B9CED730C8A65748"><enum>306.</enum><header>Exemption from early withdrawal penalty for certain State and local government corrections employees</header><subsection id="id987CD7A7051044A4B9B8E8DA89D80FA3"><enum>(a)</enum><header>In general</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(10)(B)</external-xref> is amended by striking <quote>or emergency medical services</quote> and inserting <quote>emergency medical services, or services as a corrections officer or as a forensic security employee providing for the care, custody, and control of forensic patients</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idD6EC656D0B344C6C97E85470902A9C9D"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to distributions made after the date of the enactment of this Act. </text></subsection></section><enum>IV</enum><header>Nonprofits and educators</header><section id="id4C438729C41143B4BBEA383CE270D02D"><enum>401.</enum><header>Enhancement of 403<enum-in-header>(b)</enum-in-header> plans</header><subsection id="id0db867dcef2547c8b0255a09de2bbe94"><enum>(a)</enum><header>Permitted investments</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)(7)</external-xref> is amended by striking <quote>if the amounts are to be invested in regulated investment company stock to be held in that custodial account</quote> and inserting <quote>if the amounts are to be held in that custodial account and are invested in regulated investment company stock or a group trust intended to satisfy the requirements of Internal Revenue Service Revenue Ruling 81–100 (or any successor guidance)</quote>.</text></subsection><subsection id="id3b85ad81a926494aa66cb135e2f33a9b"><enum>(b)</enum><header>Conforming amendment</header><text>The heading of paragraph (7) of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)</external-xref> is amended by striking <quote><header-in-text level="paragraph" style="OLC">for regulated investment company stock</header-in-text></quote>.</text></subsection><subsection id="id71C9690E341746E4B6799593F7280FD7"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to amounts invested after the date of the enactment of this Act.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="idBF41600E24E746A796B6CC1DB33DD3FB"><enum>402.</enum><header>Hardship withdrawal rules for 403<enum-in-header>(b)</enum-in-header> plans</header><subsection commented="no" display-inline="no-display-inline" id="id5514BF25732843B98E4E4B364FA57794"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(b)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3DB660847876468B8376DD87207FE8E8"><paragraph id="id1d396b38053a4cc5b1a7a326ef84d684"><enum>(15)</enum><header>Special rules relating to hardship withdrawals</header><text>For purposes of paragraphs (7) and (11)—</text><subparagraph id="id19dec253da4844eba263608c5e7c01e6"><enum>(A)</enum><header>Amounts which may be withdrawn</header><text>The following amounts may be distributed upon hardship of the employee:</text><clause id="id776a40312bbc4631be61aacbde2b6bc6"><enum>(i)</enum><text>Contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D)).</text></clause><clause id="id86d9a03471984ee4af5dfbbf4413496e"><enum>(ii)</enum><text>Qualified nonelective contributions (as defined in section 401(m)(4)(C)).</text></clause><clause id="id4cb26b0c255848e39f77f492d046a39d"><enum>(iii)</enum><text>Qualified matching contributions described in section 401(k)(3)(D)(ii)(I).</text></clause><clause id="idb7e32582975d4328ac29eb6b72b6c343"><enum>(iv)</enum><text>Earnings on any contributions described in clause (i), (ii), or (iii).</text></clause></subparagraph><subparagraph id="ide629bb1a7d0d422abe21698519b92de6"><enum>(B)</enum><header>No requirement to take available loan</header><text>A distribution shall not be treated as failing to be made upon the hardship of an employee solely because the employee does not take any available loan under the plan.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idf138e6ab4a7d48a2ad5da493064a689e"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="id7b1cc736601d458193344a76e284f009"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/403">Section 403(b)(7)(A)(i)(V)</external-xref> is amended by striking <quote>in the case of contributions made pursuant to a salary reduction agreement (within the meaning of section 3121(a)(5)(D))</quote> and inserting <quote>subject to the provisions of paragraph (15)</quote>.</text></paragraph><paragraph id="id01bb4bec0e1d4a3680ed7524b7f88d22"><enum>(2)</enum><text>Paragraph (11) of section 403(b), as amended by this Act, is further amended—</text><subparagraph id="id1bdbcd288c4b4b1ea01ed3eb90c1ab2d"><enum>(A)</enum><text>by striking <quote>in</quote> in subparagraph (B) and inserting <quote>subject to the provisions of paragraph (15), in</quote>; and</text></subparagraph><subparagraph id="id9c102f1567f244b6801ea68a4fbf4ef9"><enum>(B)</enum><text>by striking the last sentence.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idf297bd115b2b46c8880c71fbe73bff50"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. </text></subsection></section><section section-type="subsequent-section" id="H02F3E53DE4BC4E999FB4A3ED08030F0D"><enum>403.</enum><header>Multiple employer 403<enum-in-header>(b)</enum-in-header> plans</header><subsection id="H7B990DBBB77A48BB9F846A83C2544141"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Section 403(b), as amended by this Act, is further amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H65202DB3DBAC494BBB28C7F595B0CEAE"><paragraph id="HB9BC488B56224661BD6F064D6D0C6FB5"><enum>(16)</enum><header>Multiple employer plans</header><subparagraph id="HF80B7D0012BC4B488AC821368B6ABC91"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Except in the case of a church plan, this subsection shall not be treated as failing to apply to an annuity contract solely by reason of such contract being purchased under a plan maintained by more than 1 employer.</text></subparagraph><subparagraph id="HA2273061649048FBAD232B2E295E4484"><enum>(B)</enum><header>Treatment of employers failing to meet requirements of plan</header><clause id="H9C170D08C2C64EA5B1E3B29FDC17C76F"><enum>(i)</enum><header>In general</header><text>In the case of a plan maintained by more than 1 employer, this subsection shall not be treated as failing to apply to an annuity contract held under such plan merely because of one or more employers failing to meet the requirements of this subsection if such plan satisfies rules similar to the rules of section 413(e)(2) with respect to any such employer failure.</text></clause><clause id="HDCA5DC4EFB2C43E398977BEEC21ED80A"><enum>(ii)</enum><header>Additional requirements in case of non-governmental plans</header><text display-inline="yes-display-inline">A plan shall not be treated as meeting the requirements of this subparagraph unless the plan satisfies rules similar to the rules of subparagraph (A) or (B) of section 413(e)(1), except in the case of a multiple employer plan maintained solely by any of the following: A State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HCE86666D48DA4C31954C12AC74161801"><enum>(b)</enum><header>Annual registration for 403<enum-in-header>(b)</enum-in-header> multiple employer plan</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6057">Section 6057</external-xref> is amended by redesignating subsection (g) as subsection (h) and by inserting after subsection (f) the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HCA395AAF77CE428D8229B725DDEE4FF2"><subsection id="HE85D137B73ED4B4E9A0C8CCF712EFA4F"><enum>(g)</enum><header>403<enum-in-header>(b)</enum-in-header> multiple employer plans treated as one plan</header><text display-inline="yes-display-inline">In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (16) thereof, such plan shall be treated as a single plan for purposes of this section.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HF948CA660B274EA9927A9595BED3F6E5"><enum>(c)</enum><header>Annual information returns for 403<enum-in-header>(b)</enum-in-header> multiple employer plan</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6058">Section 6058</external-xref> is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HF935CF2F7A4540C59237825F27702142"><subsection id="H5FDEB7CD9C7F427AA78153B48A46A8E6"><enum>(f)</enum><header>403<enum-in-header>(b)</enum-in-header> multiple employer plans treated as one plan</header><text display-inline="yes-display-inline">In the case of annuity contracts to which this section applies and to which section 403(b) applies by reason of the plan under which such contracts are purchased meeting the requirements of paragraph (16) thereof, such plan shall be treated as a single plan for purposes of this section.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id8cd9c2fcc7ba4fe388a51c64b4342428"><enum>(d)</enum><header>Regulations</header><text>The Secretary of the Treasury (or the Secretary’s delegate) shall prescribe such regulations as may be necessary to clarify, in the case of plans to which <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)(16)</external-xref> of the Internal Revenue Code of 1986 applies, the treatment of an employer departing such plan in connection with such employer’s failure to meet multiple employer plan requirements.</text></subsection><subsection id="HAE2068E0E77449809482E0BC57265A39"><enum>(e)</enum><header>Modification of model plan language. etc</header><paragraph id="HD1797009572E4601A0507C1867F35726"><enum>(1)</enum><header>Plan notifications</header><text display-inline="yes-display-inline">The Secretary of the Treasury (or the Secretary’s delegate) shall modify the model plan language published under <external-xref legal-doc="usc" parsable-cite="usc/26/413">section 413(e)(5)</external-xref> of the Internal Revenue Code of 1986 to include language which notifies participating employers described in section 501(c)(3), and which are exempt from tax under section 501(a), that the plan is subject to the Employee Retirement Income Security Act of 1974 and that such employer is a plan sponsor with respect to its employees participating in the multiple employer plan and, as such, has certain fiduciary duties with respect to the plan and to its employees.</text></paragraph><paragraph id="HB577D889312A46CB90E56F7FD6943028"><enum>(2)</enum><header>Model plans for multiple employer 403<enum-in-header>(b)</enum-in-header> non-governmental plans</header><text display-inline="yes-display-inline">For plans to which <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)(16)(A)</external-xref> of the Internal Revenue Code of 1986 applies (other than a plan maintained for its employees by a State, a political subdivision of a State, or an agency or instrumentality of any one or more of the foregoing) the Secretary of the Treasury (or the Secretary’s delegate) shall publish model plan language similar to model plan language published under section 413(e)(5) of such Code.</text></paragraph><paragraph id="H977A64AFE6F14FABBF4E95A8D247CA2A"><enum>(3)</enum><header>Educational outreach to employers exempt from tax</header><text display-inline="yes-display-inline">The Secretary of the Treasury (or the Secretary’s delegate) shall provide education and outreach to increase awareness to employers described in section 501(c)(3), and which are exempt from tax under section 501(a), that multiple employer plans are subject to the Employee Retirement Income Security Act of 1974 and that such employer is a plan sponsor with respect to its employees participating in the multiple employer plan and, as such, has certain fiduciary duties with respect to the plan and to its employees.</text></paragraph></subsection><subsection id="HB5CAF32E61D7467DA73C11E31D20BE7D"><enum>(f)</enum><header>No inference with respect to church plans</header><text display-inline="yes-display-inline">Regarding any application of <external-xref legal-doc="usc" parsable-cite="usc/26/403">section 403(b)</external-xref> of the Internal Revenue Code of 1986 to an annuity contract purchased under a church plan (as defined in section 414(e) of such Code) maintained by more than 1 employer, or to any application of rules similar to section 413(e) of such Code to such a plan, no inference shall be made from section 403(b)(16)(A) of such Code (as added by this Act) not applying to such plans.</text></subsection><subsection id="H77283B17E73B4F5999F28E1092D6EDE5"><enum>(g)</enum><header>Effective date</header><paragraph id="HC1939D2BF87044F59907F361128D0174"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HBCB2F105CC4740ECA8F83D2391EF7995"><enum>(2)</enum><header>Rule of construction</header><text>Nothing in the amendments made by subsection (a) shall be construed as limiting the authority of the Secretary of the Treasury or the Secretary’s delegate (determined without regard to such amendment) to provide for the proper treatment of a failure to meet any requirement applicable under the Internal Revenue Code of 1986 with respect to one employer (and its employees) in the case of a plan to which section 403(b)(16) of such Code applies. </text></paragraph></subsection></section><enum>V</enum><header>Disaster relief</header><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="id7C37E8EEF3F94970A20DDF9D2404EB4E"><enum>501.</enum><header>Special rules for use of retirement funds in connection with qualified federally declared disasters</header><subsection id="P59B20DA79D6A4A81A2EDB70893A900F9"><enum>(a)</enum><header>Tax-Favored withdrawals from retirement plans</header><paragraph id="id5BC3307BA2CC4382980E25DC9705194C"><enum>(1)</enum><header>In general</header><text>Paragraph (2) of section 72(t), as amended by this Act, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2DD115B2464B49859831D5A0B1919E52"><subparagraph id="id374A813CDD384964B730F0DB135EAF29"><enum>(M)</enum><header>Distributions from retirement plans in connection with federally declared disasters</header><text>Any qualified disaster recovery distribution.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id603E8A56DC6248F0B114A0F10E67075E"><enum>(2)</enum><header>Qualified disaster recovery distribution</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/72">Section 72(t)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id21282558E9BB41578F24B15A7927B7F5"><paragraph id="id614C4E5F0F214ACF9A95C3AF4A6FF60C"><enum>(11)</enum><header>Qualified disaster recovery distribution</header><text>For purposes of paragraph (2)(M)—</text><subparagraph commented="no" id="id3F1747FA00EE4C01B3B2797CE2C44699"><enum>(A)</enum><header>In general</header><text>Except as provided in subparagraph (B), the term <term>qualified disaster recovery distribution</term> means any distribution made—</text><clause commented="no" id="idBBFD44141325482CAE69B5027FCF8765"><enum>(i)</enum><text>on or after the first day of the incident period of a qualified disaster and before the date that is 180 days after the applicable date with respect to such disaster, and</text></clause><clause commented="no" id="idDAA448183BEE485AB3C59129ACC3AFB3"><enum>(ii)</enum><text>to an individual whose principal place of abode at any time during the incident period of such qualified disaster is located in the qualified disaster area with respect to such qualified disaster and who has sustained an economic loss by reason of such qualified disaster.</text></clause></subparagraph><subparagraph id="PE85FA2421C424F16A3723217AF76D4FC"><enum>(B)</enum><header>Aggregate dollar limitation</header><clause id="P33E837610458414FA0F400C9F3860106"><enum>(i)</enum><header>In general</header><text>For purposes of this subsection, the aggregate amount of distributions received by an individual which may be treated as qualified disaster recovery distributions with respect to any qualified disaster in all taxable years shall not exceed $22,000.</text></clause><clause id="P41E57BC4F8B748929460FAB99EF17AD5"><enum>(ii)</enum><header>Treatment of plan distributions</header><text>If a distribution to an individual would (without regard to clause (i)) be a qualified disaster recovery distribution, a plan shall not be treated as violating any requirement of this title merely because the plan treats such distribution as a qualified disaster recovery 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 $22,000 with respect to the same qualified disaster.</text></clause><clause id="P6A7BE3EDE3EB49AB9BC7CD4F99D9C782"><enum>(iii)</enum><header>Controlled group</header><text>For purposes of clause (ii), the term <term>controlled group</term> means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.</text></clause></subparagraph><subparagraph id="P7CBD8443873747F8B041589DC124A213"><enum>(C)</enum><header>Amount distributed may be repaid</header><clause id="PEDFE2D495D5341538B666033F87462B6"><enum>(i)</enum><header>In general</header><text>Any individual who receives a qualified disaster recovery distribution may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make one or more contributions in an aggregate amount not to exceed the amount of such distribution to an eligible retirement plan of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 457(e)(16), as the case may be.</text></clause><clause id="P526C3B98C8BD4707BCFDFA0949766144"><enum>(ii)</enum><header>Treatment of repayments of distributions from eligible retirement plans other than IRAs</header><text>For purposes of this title, if a contribution is made pursuant to clause (i) with respect to a qualified disaster recovery distribution from a 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 the qualified disaster recovery distribution in an eligible rollover distribution (as defined in section 402(c)(4)) and as having transferred the amount to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text></clause><clause id="P1C9A2ED481894465B54DC31BD374B361"><enum>(iii)</enum><header>Treatment of repayments for distributions from IRAs</header><text>For purposes of this title, if a contribution is made pursuant to clause (i) with respect to a qualified disaster recovery distribution from an individual retirement plan, then, to the extent of the amount of the contribution, the qualified disaster recovery distribution shall be treated as a distribution described in section 408(d)(3) and as having been transferred to the eligible retirement plan in a direct trustee to trustee transfer within 60 days of the distribution.</text></clause></subparagraph><subparagraph id="P85A95E41B6364A168D1FA354395C4D35"><enum>(D)</enum><header>Income inclusion spread over 3-year period</header><clause id="P594938FB303347BA83EF2681852253D1"><enum>(i)</enum><header>In general</header><text>In the case of any qualified disaster recovery distribution, unless the taxpayer elects not to have this subparagraph apply for any taxable year, any amount required to be included in gross income for such taxable year shall be so included ratably over the 3-taxable year period beginning with such taxable year.</text></clause><clause commented="no" display-inline="no-display-inline" id="P7FD14A8D979247BFB797E415E6041078"><enum>(ii)</enum><header>Special rule</header><text>For purposes of clause (i), rules similar to the rules of subparagraph (E) of section 408A(d)(3) shall apply.</text></clause></subparagraph><subparagraph commented="no" id="PCAB7EDF67F814B74B7A0D50A12255CA4"><enum>(E)</enum><header>Qualified disaster</header><text>For purposes of this paragraph and paragraph (8), the term <term>qualified disaster</term> means any disaster with respect to which a major disaster has been declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act after December 27, 2020.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE3D03E6E6E414CF8AFE692F924AB9EBA"><enum>(F)</enum><header>Other definitions</header><text>For purposes of this paragraph and paragraph (8)—</text><clause id="H3559BE1A084B4D1DB25C6BFBF1736AA6"><enum>(i)</enum><header>Qualified disaster area</header><subclause id="idE6BA3292CCD5433FA980BCE87ED0B4AA"><enum>(I)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>qualified disaster area</term> means, with respect to any qualified disaster, the area with respect to which the major disaster was declared under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.</text></subclause><subclause id="id68CC77E761BC46A782AD6C44885A42B0"><enum>(II)</enum><header>Exceptions</header><text>Such term shall not include any area which is a qualified disaster area solely by reason of section 301 of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="idCA7F3056AA794F6795804CC835335400"><enum>(ii)</enum><header>Incident period</header><text>The term <term>incident period</term> means, with respect to any qualified disaster, the period specified by the Federal Emergency Management Agency as the period during which such disaster occurred.</text></clause><clause commented="no" display-inline="no-display-inline" id="id3EBB3F50BC8A48B8B4AB85E22DA92D69"><enum>(iii)</enum><header>Applicable date</header><text>The term <term>applicable date</term> means the latest of—</text><subclause id="id2c8af9da57bd4b44ba4694cc8735e0bb"><enum>(I)</enum><text>the date of the enactment of this paragraph, </text></subclause><subclause id="idD40A5053BE8F4EB89A27E8861E07AD75"><enum>(II)</enum><text>the first day of the incident period with respect to the qualified disaster, or</text></subclause><subclause id="id845A5333A6914AEEB6464D8D7DACE6C8"><enum>(III)</enum><text>the date of the disaster declaration with respect to the qualified disaster. </text></subclause></clause><clause id="idBACEC952D6B84FDCBC74A1577A03F850"><enum>(iv)</enum><header>Eligible retirement plan</header><text>The term <term>eligible retirement plan</term> shall have the meaning given such term by section 402(c)(8)(B).</text></clause></subparagraph><subparagraph id="P82F1F83C56D84B39A860BE0E75016844"><enum>(G)</enum><header>Special rules</header><clause id="P91E762C62BAC4754939A968F1404EC44"><enum>(i)</enum><header>Exemption of distributions from trustee to trustee transfer and withholding rules</header><text>For purposes of sections 401(a)(31), 402(f), and 3405, qualified disaster recovery distributions shall not be treated as eligible rollover distributions.</text></clause><clause id="PE918AF93A6224571A1820D945F36CB27"><enum>(ii)</enum><header>Qualified disaster recovery distributions treated as meeting plan distribution requirements</header><text>For purposes of this title—</text><subclause id="id2648190AD62B42639968BCFD28EE423C"><enum>(I)</enum><text>a qualified disaster recovery distribution shall be treated as meeting the requirements of sections 401(k)(2)(B)(i), 403(b)(7)(A)(i), 403(b)(11), and 457(d)(1)(A), and</text></subclause><subclause id="idCA4171A379F54E30B9522BEF5D92E288"><enum>(II)</enum><text>in the case of a money purchase pension plan, a qualified disaster recovery distribution which is an in-service withdrawal shall be treated as meeting the requirements of section 401(a) applicable to distributions.</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id2627C1E015CE441CBC49579E38A0B093"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to distributions with respect to disasters the incident period (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(11)(F)(ii)</external-xref> of the Internal Revenue Code of 1986, as added by this subsection) for which begins on or after the date which is 30 days after the date of the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.</text></paragraph></subsection><subsection id="PF5A4B696E16C4CDAAC05D3DE7FF91A5E"><enum>(b)</enum><header>Recontributions of withdrawals for home purchases</header><paragraph id="idDB6A35502AD342F29068FEDA132D5BF1"><enum>(1)</enum><header>Individual retirement plans</header><text>Paragraph (8) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB66CC7F97D204CE5A138DD58B41F2047"><subparagraph id="idBEEB336C3FA647E89DDF872527BFACC0"><enum>(F)</enum><header>Recontributions</header><clause id="id1C6549C4EE26471A9BABDD963AF287AE"><enum>(i)</enum><header>General rule</header><subclause id="id7A0C9B8A0CD241C7BA5B84BC0A3D3D31"><enum>(I)</enum><header>In general</header><text>Any individual who received a qualified distribution may, during the applicable period, make one or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan (as defined in section 402(c)(8)(B)) 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), or 408(d)(3), as the case may be.</text></subclause><subclause id="id6FC043B7ADE2425FA05732DE60317569"><enum>(II)</enum><header>Treatment of repayments</header><text>Rules similar to the rules of clauses (ii) and (iii) of paragraph (11)(C) shall apply for purposes of this subsection.</text></subclause></clause><clause id="id7FC1BFBDA11344B5AFA045BEAF165330"><enum>(ii)</enum><header>Qualified distribution</header><text>For purposes of this subparagraph, the term <term>qualified distribution</term> means any distribution—</text><subclause commented="no" display-inline="no-display-inline" id="id8433801311B548F8A1B73F680F5BAE9F"><enum>(I)</enum><text display-inline="yes-display-inline">which is a qualified first-time homebuyer distribution,</text></subclause><subclause id="idC8690834CCFE4C97A9E418E4D30F9BE9"><enum>(II)</enum><text display-inline="yes-display-inline">which was to be used to purchase or construct a principal residence in a qualified disaster area, but which was not so used on account of the qualified disaster with respect to such area, and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idED14F6B88B1042D3B7A804835C67F485"><enum>(III)</enum><text>which was received during the period beginning on the date which is 180 days before the first day of the incident period of such qualified disaster and ending on the date which is 30 days after the last day of such incident period.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id3609E07F2C2C4A8380459B9373C4932C"><enum>(iii)</enum><header>Applicable period</header><text>For purposes of this subparagraph, the term <term>applicable period</term> means, in the case of a principal residence in a qualified disaster area with respect to any qualified disaster, the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is 180 days after the applicable date with respect to such disaster.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id50461C5BEFDF4A908EB70D060C5BFE50"><enum>(2)</enum><header>Qualified plans</header><text>Subsection (c) of section 402, as amended by this Act, is further amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3BBF489AE3504DA6A976E1206731CE8E"><paragraph id="id74EF7F2061B641D1938BE601C10BE645"><enum>(13)</enum><header>Recontributions of withdrawals for home purchases</header><subparagraph id="idA53347F989C6469CB09336983F530A14"><enum>(A)</enum><header>General rule</header><clause id="idE7D625CB80E74A91A2328DF38F0E0BB4"><enum>(i)</enum><header>In general</header><text>Any individual who received a qualified distribution may, during the applicable period, make one or more contributions in an aggregate amount not to exceed the amount of such qualified distribution to an eligible retirement plan (as defined in paragraph (8)(B)) of which such individual is a beneficiary and to which a rollover contribution of such distribution could be made under subsection (c) or section 403(a)(4), 403(b)(8), or 408(d)(3), as the case may be.</text></clause><clause id="id2BA357199A88468BA2DF57C682C55718"><enum>(ii)</enum><header>Treatment of repayments</header><text>Rules similar to the rules of clauses (ii) and (iii) of section 72(t)(11)(C) shall apply for purposes of this subsection.</text></clause></subparagraph><subparagraph id="idAE050346D6CC4FDE9D724AA420FD1D0F"><enum>(B)</enum><header>Qualified distribution</header><text>For purposes of this paragraph, the term <term>qualified distribution</term> means any distribution—</text><clause id="id1D2FA398FE094A03A7103D9A4D9DC073"><enum>(i)</enum><text>described in section 401(k)(2)(B)(i)(IV), 403(b)(7)(A)(i)(V), or 403(b)(11)(B),</text></clause><clause id="idD25A3CE16EAC45AB8DCE836C1BE369EC"><enum>(ii)</enum><text display-inline="yes-display-inline">which was to be used to purchase or construct a principal residence in a qualified disaster area, but which was not so used on account of the qualified disaster with respect to such area, and</text></clause><clause commented="no" display-inline="no-display-inline" id="idD80D379B05584EBDB2F70BC22AC9CAE0"><enum>(iii)</enum><text display-inline="yes-display-inline">which was received during the period beginning on the date which is 180 days before the first day of the incident period of such qualified disaster and ending on the date which is 30 days after the last day of such incident period.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id9452B383B5174B69A9E22407E853D068"><enum>(C)</enum><header>Definitions</header><text>For purposes of this paragraph—</text><clause commented="no" display-inline="no-display-inline" id="idC43B61CF35F440A597DF92A1D41B553D"><enum>(i)</enum><text>the terms <term>qualified disaster</term>, <term>qualified disaster area</term>, and <term>incident period</term> have the meaning given such terms under section 72(t)(11), and</text></clause><clause commented="no" display-inline="no-display-inline" id="id48C86613611440B9BFB648AE5C1F06D9"><enum>(ii)</enum><text>the term <term>applicable period</term> has the meaning given such term under section 72(t)(8)(F).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id66888A8936D149C6BF723B7087F7AD43"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to recontributions of withdrawals for home purchases with respect to disasters the incident period (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(11)(F)(ii)</external-xref> of the Internal Revenue Code of 1986, as added by this subsection) for which begins on or after the date which is 30 days after the date of the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.</text></paragraph></subsection><subsection id="P3FCC7670CD5B4EB193ADE176C1B71753"><enum>(c)</enum><header>Loans from qualified plans</header><paragraph id="idF573E5EC84D040DE99806EC7F92C4804"><enum>(1)</enum><header>In general</header><text>Subsection (p) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8CE4870C501041B9B664776C5FEE7673"><paragraph id="PF53ABAE2FB7749A1B1B4E09ADEA90D59"><enum>(6)</enum><header>Increase in limit on loans not treated as distributions</header><subparagraph id="id676AC08A031A4E74B0CC62D8F053108A"><enum>(A)</enum><header>In general</header><text>In the case of any loan from a qualified employer plan to a qualified individual made during the applicable period—</text><clause id="P7139AEAD5C024159BD25A655851B59BA"><enum>(i)</enum><text>clause (i) of paragraph (2)(A) shall be applied by substituting <quote>$100,000</quote> for <quote>$50,000</quote>, and</text></clause><clause id="P9A64D56C7DFE448E93474117B81C748B"><enum>(ii)</enum><text>clause (ii) of such paragraph shall be applied by substituting <quote>the present value of the nonforfeitable accrued benefit of the employee under the plan</quote> for <quote>one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan</quote>.</text></clause></subparagraph><subparagraph id="P79AF90412BB345B5B77F227A6DF3555B"><enum>(B)</enum><header>Delay of repayment</header><text>In the case of a qualified individual with respect to any qualified disaster with an outstanding loan from a qualified employer plan on or after the applicable date with respect to the qualified disaster—</text><clause id="PFA7EADC61A8B4815A4404053B3087B92"><enum>(i)</enum><text>if the due date pursuant to subparagraph (B) or (C) of paragraph (2) for any repayment with respect to such loan occurs during the period beginning on the first day of the incident period of such qualified disaster and ending on the date which is 180 days after the last day of such incident period, such due date may be delayed for 1 year,</text></clause><clause id="PD10F71344B4B423484290886D0FE6B26"><enum>(ii)</enum><text>any subsequent repayments with respect to any such loan may be appropriately adjusted to reflect the delay in the due date under clause (i) and any interest accruing during such delay, and</text></clause><clause id="P6834848590F14C7CB7F4618933D47743"><enum>(iii)</enum><text>in determining the 5-year period and the term of a loan under subparagraph (B) or (C) of paragraph (2), the period described in clause (i) may be disregarded.</text></clause></subparagraph><subparagraph id="idAF763A447F734B2E87683CA5AE96B1CE"><enum>(C)</enum><header>Definitions</header><text>For purposes of this paragraph—</text><clause id="PBF6104DFF9E34DDFB6780447D33AE0AF"><enum>(i)</enum><header>Qualified individual</header><text>The term <term>qualified individual</term> means any individual—</text><subclause id="idE07B23157A8E4715AB27BE6BBC21E5BE"><enum>(I)</enum><text>whose principal place of abode at any time during the incident period of any qualified disaster is located in the qualified disaster area with respect to such qualified disaster, and</text></subclause><subclause id="idE5B3B7745A594320A066C56B9B919696"><enum>(II)</enum><text>who has sustained an economic loss by reason of such qualified disaster.</text></subclause></clause><clause commented="no" id="PDD73AAADB19845E7A2202D8B4F430EDC"><enum>(ii)</enum><header>Applicable period</header><text>The applicable period with respect to any disaster is the period—</text><subclause commented="no" id="id5912770441994F90992689C80F24A27D"><enum>(I)</enum><text>beginning on the applicable date with respect to such disaster, and</text></subclause><subclause commented="no" id="id701CA45EA1644E8EB99AD63F188AF192"><enum>(II)</enum><text>ending on the date that is 180 days after such applicable date.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="id6F4D6EB5A3014127AD21FFF7E8CB2DFB"><enum>(iii)</enum><header>Other terms</header><text>For purposes of this paragraph—</text><subclause commented="no" display-inline="no-display-inline" id="id3495AA186C7445769A53128BB4B2CA95"><enum>(I)</enum><text>the terms <term>applicable date</term>, <term>qualified disaster</term>, <term>qualified disaster area</term>, and <term>incident period</term> have the meaning given such terms under subsection (t)(11), and</text></subclause><subclause commented="no" display-inline="no-display-inline" id="idD7B22F1A474849D988ED55F697533CD4"><enum>(II)</enum><text>the term <term>applicable period</term> has the meaning given such term under subsection (t)(8).</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id51F8A6206EFA441E8041949E47ECE7F7"><enum>(2)</enum><header>Effective date</header><text>The amendment made by paragraph (1) shall apply to plan loans made with respect to disasters the incident period (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)(11)(F)(ii)</external-xref> of the Internal Revenue Code of 1986, as added by this subsection) for which begins on or after the date which is 30 days after the date of the enactment of the Taxpayer Certainty and Disaster Tax Relief Act of 2020.</text></paragraph></subsection><subsection id="id68b3f1f759c941caaa851edec2628416"><enum>(d)</enum><header>GAO Report</header><text>The Comptroller General of the United States shall submit a report to the Committees on Finance and Health, Education, Labor and Pensions of the Senate and the Committees on Ways and Means and Education and Labor of the House of Representatives on taxpayer utilization of the retirement disaster relief permitted by the amendments made by this section and or permitted by prior legislation, including a comparison of utilization by higher and lower income taxpayers and whether the $22,000 threshold on distributions provides adequate relief for taxpayers who suffer from a disaster.</text></subsection></section><enum>VI</enum><header>Employer plans</header><section id="H331E621211794557AC9BC92ABA279B6C"><enum>601.</enum><header>Credit for employers with respect to modified safe harbor requirements</header><subsection id="H403C37DBC9904A0D86666143A0CD2725"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is further amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB0E321F37C304EC98E8645ABD6CFFBBB"><section id="HA28E039317754353985E9DB42A6F872D"><enum>45V.</enum><header>Credit for small employers with respect to modified safe harbor requirements for automatic contribution arrangements</header><subsection id="HA82FF244F10D46A79CAC9DD7AB9861F0"><enum>(a)</enum><header>General rule</header><text>For purposes of section 38, in the case of a small employer, the safe harbor adoption credit determined under this section for any taxable year is the amount equal to the total of the employer’s matching contributions under section 401(k)(16)(D) during the taxable year on behalf of employees who are not highly compensated employees.</text></subsection><subsection id="HB9389B249B764EBBA600D1C91159C0E9"><enum>(b)</enum><header>Limitations</header><paragraph id="HA990BD2CAFFD43DA9A884B5408B93E36"><enum>(1)</enum><header>Limitation with respect to compensation</header><text>The credit determined under subsection (a) with respect to contributions made on behalf of any employee shall not exceed 2 percent of the compensation of such employee for the taxable year.</text></paragraph><paragraph id="HEA7567A5C32B462B840DD7A7851CD5A4"><enum>(2)</enum><header>Limitation with respect to years of participation</header><text>A credit shall be determined under subsection (a) with respect to contributions made on behalf of any employee only during the first 5 years such employee participates in the secure deferral arrangement.</text></paragraph></subsection><subsection id="H42B325EEE2444EE394BE1523851B1A90"><enum>(c)</enum><header>Definitions</header><paragraph id="H2D6C4BAE8F0B444CB6A94381985DD335"><enum>(1)</enum><header>In general</header><text>Any term used in this section which is also used in section 401(k)(16) shall have the same meaning as when used in such section.</text></paragraph><paragraph id="H294805C8E2B54B38B965EEFB7533707B"><enum>(2)</enum><header>Small employer</header><text>The term <term>small employer</term> means an eligible employer (as defined in section 408(p)(2)(C)(i)).</text></paragraph></subsection><subsection id="id5A1034B88524489F8DFCE288AE990D39"><enum>(d)</enum><header>Special rules</header><paragraph id="id8b06d96638e34a829d214e9c847f7314"><enum>(1)</enum><header>Aggregation rules</header><text>For purposes of this section, all persons treated as a single employer under subsection (a) or (b) of section 52, or subsection (m) or (o) of section 414, shall be treated as one person and all plans of the employer shall be treated as 1 eligible plan.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA800371052B1444C8FEF7C31ED7A55E5"><enum>(2)</enum><header display-inline="yes-display-inline">Denial of double benefit</header><text display-inline="yes-display-inline">No deduction shall be allowable under this title for any contribution with respect to which a credit is allowed under this section. </text></paragraph><paragraph id="id5eb62c89670f44ba99c2c39639c26f54"><enum>(3)</enum><header>Election not to claim credit</header><text>This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H19D13099E4F34232BB15945CF60CC7E8"><enum>(b)</enum><header>Credit to be part of general business credit</header><text>Subsection (b) of section 38, as amended by this Act, is further amended by striking <quote>plus</quote> at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text><quoted-block style="OLC" id="H271C6196E5DE472FB1259F4649A1083E"><paragraph id="H897EC6750FD844D98CDFDB479149B493"><enum>(35)</enum><text>the safe harbor adoption credit determined under section 45V.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HEB5807675BCD4AF79C3EF527D0AA78C2"><enum>(c)</enum><header>Treatment of credit for certified professional employer organizations</header><text>Paragraph (2) of section 3511(d), as amended by this Act, is further amended—</text><paragraph id="id7D9A2CF6DC27462692AD4EC56B211BE8"><enum>(1)</enum><text>by redesignating subparagraphs (G), (H), and (I) as subparagraphs (H), (I), and (J), respectively, and</text></paragraph><paragraph id="idDBE20AC478274CE3951012352AD14681"><enum>(2)</enum><text>by inserting after subparagraph (F) the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id334A7C5D388C4DCAAE98E72524CB5259"><subparagraph id="idD9E11550CC834EFC83261D61403F87C1"><enum>(G)</enum><text>section 45V (safe harbor adoption credit),</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id15C383F0873249B6B858B265B6E5DEA0"><enum>(d)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is further amended by inserting after the item relating to section 45U the following new item:</text><quoted-block style="OLC" id="H621B5E49D4744E1B9CBE515D3D39DBB2"><toc regeneration="no-regeneration"><toc-entry level="section">Sec. 45V. Credit for small employers with respect to modified safe harbor requirements for automatic contribution arrangements.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H9EAAC912C4AE41D7925EAF7B66FC47B6"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years which include any portion of a plan year beginning after December 31, 2023. </text></subsection></section><section id="H9D41569E12D24EAE9D6CC2C311CB7137"><enum>602.</enum><header>Application of top heavy rules to defined contribution plans covering excludable employees</header><subsection id="H4B2B237131034702BA196EBED84A6278"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/416">section 416(c)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" id="HB07B621BE3CC4C09B4877123DA786399"><subparagraph id="HECF81D8808F042EFA9237AF85239A508"><enum>(C)</enum><header>Application to employees not meeting age and service requirements</header><text>Any employees not meeting the age or service requirements of section 410(a)(1) (without regard to subparagraph (B) thereof) may be excluded from consideration in determining whether any plan of the employer meets the requirements of subparagraphs (A) and (B).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H52B91FF83AA24912AE8B0FD943F364F2"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to plan years beginning after the date of the enactment of this Act.</text></subsection></section><section id="H633DD8BC18D04CBEB5AB3FF832B8F0DC"><enum>603.</enum><header>Increase in credit limitation for small employer pension plan startup costs of certain employers</header><subsection id="HDEFEBC958170440BAF09BE97B90D8AA3"><enum>(a)</enum><header>In general</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/45E">section 45E</external-xref> is amended by inserting before the period at the end the following: <quote>(75 percent of such costs in the case of an eligible employer, as determined by substituting <quote>25</quote> for <quote>100</quote> in section 408(p)(2)(C)(i))</quote>.</text></subsection><subsection id="id593970ED87F74E699EEAFCD5B5A23A11"><enum>(b)</enum><header>Treatment of credit for certified professional employer organizations</header><text>Paragraph (2) of section 3511(d), as amended by this Act, is further amended—</text><paragraph id="idC5839D59B5144606824FBB7F3611B6AB"><enum>(1)</enum><text>by redesignating subparagraphs (E), (F), (G), (H), (I), and (J) as subparagraphs (F), (G), (H), (I), (J), and (K), respectively, and</text></paragraph><paragraph id="id293A64CDE8A94C90A5507FDB8078F543"><enum>(2)</enum><text>by inserting after subparagraph (D) the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id3768A0BB7481454E8C1B597A3566F68A"><subparagraph id="idB97F3631817940D3ACE8768F536E3D79"><enum>(E)</enum><text>section 45E (small employer pension plan startup cost credit),</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H7075697EDC1344E893746738DE8C30C4"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023. </text></subsection></section><section commented="no" id="HB1EB9922E2D64528BB2982DAD781ACC2"><enum>604.</enum><header>Expansion of Employee Plans Compliance Resolution System</header><subsection commented="no" id="H126207F43F44423E98F13E8E2FFF3C2D"><enum>(a)</enum><header>In general</header><text>Except as otherwise provided in guidance prescribed by the Secretary of the Treasury or the Secretary's delegate (referred to in this section as the <quote>Secretary</quote>), any eligible inadvertent failure to comply with the rules applicable under section 401(a), 403(a), 403(b), 408(p), or 408(k) of the Internal Revenue Code of 1986 may be self-corrected under the Employee Plans Compliance Resolution System (as described in Revenue Procedure 2021–30 or any successor guidance, and hereafter referred to in this section as the <quote>EPCRS</quote>), except to the extent that such failure was identified by the Secretary prior to any actions which demonstrate a commitment to implement a self-correction. Revenue Procedure 2021–30 is deemed amended as of the date of the enactment of this Act to provide that, except as otherwise provided under such Code or other guidance prescribed by the Secretary, the correction period under section 9.02 of such Revenue Procedure (or any successor guidance) for an eligible inadvertent failure is indefinite and has no last day, other than with respect to failures identified by the Secretary prior to any self-correction as described in the preceding sentence.</text></subsection><subsection id="HB4400B37B3514B129D1592D290C5FEC7"><enum>(b)</enum><header>Loan errors</header><text display-inline="yes-display-inline">In the case of an eligible inadvertent failure relating to a loan from a plan to a participant, such failure may be self-corrected under subsection (a) according to the rules of section 6.07 of Revenue Procedure 2021–30 (or any successor guidance), including the provisions related to whether a deemed distribution must be reported on Form 1099–R.</text></subsection><subsection commented="no" id="H7748E922417C4813AFE3103CF0670DB2"><enum>(c)</enum><header>EPCRS for IRAs</header><text>The Secretary shall expand the EPCRS to allow custodians of individual retirement plans (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/7701">section 7701(a)(37)</external-xref> of the Internal Revenue Code of 1986) to address eligible inadvertent failures with respect to individual retirement plans (as so defined), including—</text><paragraph commented="no" id="HE76405830D8E45D0BADB114789CB0CFA"><enum>(1)</enum><text>waivers of the excise tax which would otherwise apply under <external-xref legal-doc="usc" parsable-cite="usc/26/4974">section 4974</external-xref> of the Internal Revenue Code of 1986; and</text></paragraph><paragraph commented="no" id="H8C3217E77C8E45C592DD09A00B365034"><enum>(2)</enum><text>rules permitting a nonspouse beneficiary to return distributions to an inherited individual retirement plan described in <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(d)(3)(C)</external-xref> of the Internal Revenue Code of 1986 in a case where, due to an inadvertent error by a service provider, the beneficiary had reason to believe that the distribution could be rolled over without inclusion in income of any part of the distributed amount.</text></paragraph></subsection><subsection commented="no" id="idcc9aaa92c1044514bd1146f22c27e708"><enum>(d)</enum><header>Correction methods for eligible inadvertent failures</header><text>The Secretary shall issue guidance on correction methods that are required to be used to correct eligible inadvertent failures, including general principles of correction if a specific correction method is not specified by the Secretary.</text></subsection><subsection id="HCD8DA1015A774AF88CC3A631DB68FE22"><enum>(e)</enum><header>Eligible inadvertent failure</header><text>For purposes of this section—</text><paragraph id="H2EDEF5B3311546A6AED8C59507C7B926"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the term <term>eligible inadvertent failure</term> means a failure that occurs despite the existence of practices and procedures which—</text><subparagraph id="HC8C28CDB2C7F4E5F96222CA444F9672B"><enum>(A)</enum><text>satisfy the standards set forth in section 4.04 of Revenue Procedure 2021–30 (or any successor guidance), or</text></subparagraph><subparagraph id="HC9D44D8F305B42EC84E21A7522FC4058"><enum>(B)</enum><text>satisfy similar standards in the case of an individual retirement plan.</text></subparagraph></paragraph><paragraph id="H5329EC9F96DF447DB0A181B26D8CF9E1"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">The term <term>eligible inadvertent failure</term> shall not include any failure which is egregious, relates to the diversion or misuse of plan assets, or is directly or indirectly related to an abusive tax avoidance transaction.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2D72C6A1D5944399B1987D1CB1103805"><enum>(f)</enum><header>Deadline</header><text>Any guidance, or revision to any such guidance, required by this section shall be promulgated not later than the date which is 2 years after the date of the enactment of this Act.</text></subsection></section><section id="HF3B00BDD51FA47C588B38250C1ABDEB2"><enum>605.</enum><header>Application of credit for small employer pension plan startup costs to employers which join an existing plan</header><subsection id="H9044816BBC574C46A05F51C20CF4A755"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/45E">Section 45E(d)(3)(A)</external-xref> is amended by striking <quote>effective</quote> and inserting <quote>effective with respect to the eligible employer</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H4C9C14FE7447482C8943165B45EF87CA"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to eligible employer plans which become effective with respect to the eligible employer after the date of the enactment of this Act. </text></subsection></section><section commented="no" id="id560bfc24a5b441f3a2cf37b6c8f863c5"><enum>606.</enum><header>Safe harbor for corrections of employee elective deferral failures</header><text display-inline="no-display-inline">The Secretary of the Treasury shall modify Appendix A.05(8) of Revenue Procedure 2021-30 (the Employee Plans Compliance Resolution System, or EPCRS) not later than December 31, 2023—</text><paragraph commented="no" id="id3C5DDECAB009420CA15BB6EF8855E45B"><enum>(1)</enum><text>to provide that the special safe harbor correction method provided in Appendix A.05(8) for failures related to automatic contribution features in a section 401(k) plan or a section 403(b) plan is not limited to failures that begin on or before December 31, 2023, and</text></paragraph><paragraph commented="no" id="id7823A7AD7CE4417680DB32F9E3E70892"><enum>(2)</enum><text>to clarify that EPCRS correction methods for failures related to automatic contribution features that require notices to a participant can be satisfied without regard to whether the participant remains employed at the time corrections are made. </text></paragraph></section><section section-type="subsequent-section" id="H7D3A695BEFAF4AC39825B0C7B3799D03"><enum>607.</enum><header>Reform of family attribution rule</header><subsection id="H22224F62C54A42719A498F5B43204DF2"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414</external-xref> is amended—</text><paragraph id="H3979DB75131D45D28AD61F0C0E8A2D7E"><enum>(1)</enum><text>in subsection (b)—</text><subparagraph id="HBD75EDBE27E64795A6FD40A8CFA8A737"><enum>(A)</enum><text>by striking <quote>For purposes of</quote> and inserting the following: </text><quoted-block style="OLC" display-inline="no-display-inline" id="H2682C939420F421E9D6BA7DDC29A98B7"><paragraph id="H1ED35F1C6C474CB888B0D9EC480B1940"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph id="H9CEA267CF170408EA69F689E25DBF4B7"><enum>(B)</enum><text>by adding at the end the following new paragraphs: </text><quoted-block style="OLC" display-inline="no-display-inline" id="H53CCB065101C48999D71560EF80C70EC"><paragraph id="H2A0426B8877541F1B49165763A380073"><enum>(2)</enum><header>Special rules for applying family attribution</header><text display-inline="yes-display-inline">For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply:</text><subparagraph id="H2C34045B2CE34F9CB560587B81F09025"><enum>(A)</enum><text>Community property laws shall be disregarded for purposes of determining ownership.</text></subparagraph><subparagraph commented="no" id="HDB091456BFD44A8E96A5076013533AC4"><enum>(B)</enum><text display-inline="yes-display-inline">Except as provided by the Secretary, stock of an individual not attributed under section 1563(e)(5) to such individual’s spouse shall not be attributed to such spouse by reason of the combined application of paragraphs (1) and (6)(A) of section 1563(e).</text></subparagraph><subparagraph commented="no" id="H2228E80139CB4CB19C4F8E1E7FD14BB4"><enum>(C)</enum><text>Except as provided by the Secretary, in the case of stock in different corporations that is attributed to a child under section 1563(e)(6)(A) from each parent, and is not attributed to such parents as spouses under section 1563(e)(5), such attribution to the child shall not by itself result in such corporations being members of the same controlled group.</text></subparagraph></paragraph><paragraph id="H4E9F80F7D9E14457961ADE1A4555045E"><enum>(3)</enum><header>Plan shall not fail to be treated as satisfying this section</header><text display-inline="yes-display-inline">If application of paragraph (2) causes 2 or more entities to be a controlled group or to no longer be in a controlled group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies.</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="H32758906A2774C4590EE9B3A278261B4"><enum>(2)</enum><text>in subsection (m)(6)(B)—</text><subparagraph id="H9C4497495DE148C2B403DD1AE3C681E2"><enum>(A)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">Ownership.—</header-in-text>In determining</quote> and inserting the following:</text><quoted-block style="OLC" display-inline="yes-display-inline" id="HB407B049F1ED4FBBA500ADFBAFB104CC"><text><header-in-text level="paragraph" style="OLC">Ownership.—</header-in-text></text><clause id="H2B4BE9F399E94A93A24AF53E606D366C"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">In determining</text></clause><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph id="H880B9E69353D4A90BF0E3C6E649C51E2"><enum>(B)</enum><text>by adding at the end the following new clauses:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H8585EF8693F54E69B73DF554FC85C952"><clause id="H9678F96EFEF54420AB12559EED2F57F4"><enum>(ii)</enum><header>Special rules for applying family attribution</header><text display-inline="yes-display-inline">For purposes of applying the attribution rules under section 318 with respect to clause (i), the following rules apply:</text><subclause id="H2C5411ED46D14E5CB1E01B7535CFD0D5"><enum>(I)</enum><text>Community property laws shall be disregarded for purposes of determining ownership.</text></subclause><subclause id="HB891D57005524B26963391D239407CCE"><enum>(II)</enum><text>Except as provided by the Secretary, stock of an individual not attributed under section 318(a)(1)(A)(i) to such individual’s spouse shall not be attributed by reason of the combined application of paragraphs (1)(A)(ii) and (4) of section 318(a) to such spouse from a child who has not attained the age of 21 years.</text></subclause><subclause id="H735C1E4DF7454E2F91270327057586D1"><enum>(III)</enum><text>Except as provided by the Secretary, in the case of stock in different organizations which is attributed under section 318(a)(1)(A)(ii) from each parent to a child who has not attained the age of 21 years, and is not attributed to such parents as spouses under section 318(a)(1)(A)(i), such attribution to the child shall not by itself result in such organizations being members of the same affiliated service group.</text></subclause></clause><clause commented="no" display-inline="no-display-inline" id="H25FA0016DA5546AC947F936CFCD8D6D1"><enum>(iii)</enum><header>Plan shall not fail to be treated as satisfying this section</header><text>If the application of clause (ii) causes two or more entities to be an affiliated service group, or to no longer be in an affiliated service group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies.</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph id="id563A42E517B64F108DBEC7EB36E89796"><enum>(C)</enum><text>by striking <quote>apply</quote> in clause (i), as so added, and inserting <quote>apply, except that community property laws shall be disregarded for purposes of determining ownership</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H123893E9F4BB4FAC923801536350583D"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2023. </text></subsection></section><section section-type="subsequent-section" id="id672489BEA1D64BD5B31A5441258B7C00"><enum>608.</enum><header>Contribution limit for simple IRAs</header><subsection id="id277EA04B4D084C6B8C70B857F9EB9AAE"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Subparagraph (E) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(p)(2)</external-xref> is amended—</text><paragraph id="idE69BD6FF9B59461D8481F157294C8084"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>amount is</quote> and all that follows in clause (i) and inserting “dollar amount is—</text><quoted-block style="OLC" display-inline="no-display-inline" id="idCD259B36CCD947C686DB7110E95840FD"><subclause id="idD677CFC2325342C0A94F1A374A245035"><enum>(I)</enum><text display-inline="yes-display-inline">$16,500 in the case of an eligible employer described in clause (iii) which had not more than 25 employees who received at least $5,000 of compensation from the employer for the preceding year,</text></subclause><subclause id="id66164F1376DD4E41B462EF45E820D59A"><enum>(II)</enum><text>$16,500 in the case of an eligible employer described in clause (iii) which is not described in subclause (I) and which elects, at such time and in such manner as prescribed by the Secretary, the application of this subclause for the year, and</text></subclause><subclause id="id91BE5A8529AF4B07B27406457B9B33C5"><enum>(III)</enum><text>$10,000 in any other case.</text></subclause><after-quoted-block>,</after-quoted-block></quoted-block></paragraph><paragraph id="idE4156EA7C62B4300823499D0ED73AB9B"><enum>(2)</enum><text>by striking <quote><header-in-text level="clause" style="OLC">adjustment</header-in-text>.—In the case of</quote> in clause (ii) and inserting “<header-in-text level="clause" style="OLC">adjustment</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2400F1660D834CACB0EDE7A328E6FD73"><subclause id="id8130553B517444E7AB3A7F4859099E94"><enum>(I)</enum><header>Certain large employers</header><text>In the case of</text></subclause><after-quoted-block>,</after-quoted-block></quoted-block></paragraph><paragraph id="id92FA4C6112A147E3A8F5EDCCB71DFE18"><enum>(3)</enum><text>by striking <quote>clause (i)</quote> in clause (ii) and inserting <quote>clause (i)(III)</quote>, and</text></paragraph><paragraph id="id90F2D83E056643DD95F998B54106BE68"><enum>(4)</enum><text>by adding at the end of clause (ii) the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idABB7F6CD60D44B82A4BAAE71E4D97918"><subclause commented="no" display-inline="no-display-inline" id="id9D5B18C96C634C8299A43091D937F7AC"><enum>(II)</enum><header display-inline="yes-display-inline">Other employers</header><text display-inline="yes-display-inline">In the case of a year beginning after December 31, 2024, the Secretary shall adjust annually the $16,500 amount in subclauses (I) and (II) of clause (i) in the manner provided under subclause (I) of this clause, except that the base period taken into account shall be the calendar quarter beginning July 1, 2023.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idCF79F8DCA2C04764B251DDD90A668280"><enum>(b)</enum><header>Catch-up contributions</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(v)</external-xref> is amended—</text><paragraph id="id1DAE82D4F78D4BF1BF44EBFE3F4B47E9"><enum>(1)</enum><text>in subparagraph (B)—</text><subparagraph id="id57292F361AEF4A46B4D1648C081AE7B9"><enum>(A)</enum><text>by striking <quote>the applicable</quote> in clause (ii) and inserting <quote>except as provided in clause (iii), the applicable</quote>; and</text></subparagraph><subparagraph id="idC8BAE9DA6D5B4981BD476376E727DAE9"><enum>(B)</enum><text>by adding at the end the following new clause:</text><quoted-block style="OLC" act-name="" id="idE8864F90D61849AFAD4ECE6FC0F58CE0"><clause id="id588333403AB846A49938F2A5723AF9AE"><enum>(iii)</enum><text>In the case of an applicable employer plan—</text><subclause id="idA75DD2A77E76475DB7D78D65DA2851D5"><enum>(I)</enum><text>which is maintained by an eligible employer described in section 408(p)(2)(E)(i)(I), or</text></subclause><subclause id="idC51846FB55904C298E61F4E291408B60"><enum>(II)</enum><text>to which an election under section 408(p)(2)(E)(i)(II) applies for the year (including a plan described in section 401(k)(11) which is maintained by an eligible employer described in section 408(p)(2)(E)(i)(II) and to which such election applies by reason of subparagraphs (B)(i)(I) and (E) of section 401(k)(11)),</text></subclause><continuation-text continuation-text-level="clause">the applicable dollar amount is $4,750.</continuation-text></clause><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idFFC2C9B80AE74E138C0B3996DA3D7F55"><enum>(2)</enum><text>in subparagraph (C), as amended by this Act, by striking <quote>and the $2,500 amount in subparagraph (B)(ii)</quote> and inserting <quote>, the $2,500 amount in subparagraph (B)(ii), and the $4,750 amount in subparagraph (B)(iii)</quote>.</text></paragraph></subsection><subsection id="id40F5455B599B489B9B640293ADC0CA50"><enum>(c)</enum><header>Employer match</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(p)(2)(C)</external-xref> is amended—</text><paragraph id="id00287D7C452C463A8E92B8EED25804D4"><enum>(1)</enum><text>by striking <quote>The term</quote> in subclause (I) and inserting <quote>Except as provided in subclause (IV), the term</quote>,</text></paragraph><paragraph id="id36E0DFE1D5A4441897D25CF7F261176E"><enum>(2)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id469F368B8428444A8037458F271AD0FA"><subclause commented="no" display-inline="no-display-inline" id="id783E9BED41FC484E88A6088102A99914"><enum>(IV)</enum><header display-inline="yes-display-inline">Special rule for electing larger employers</header><text display-inline="yes-display-inline">In the case of an employer which had more than 25 employees who received at least $5,000 of compensation from the employer for the preceding year, and which makes the election under subparagraph (E)(i)(II) for any year, subclause (I) shall be applied for such year by substituting <quote>4 percent</quote> for <quote>3 percent</quote>.</text></subclause><after-quoted-block>, and</after-quoted-block></quoted-block></paragraph><paragraph id="idD75B433FC6534F4DB616EDB17CDE99BE"><enum>(3)</enum><text>by striking <quote>3 percent</quote> each place it appears in subclauses (II) and (III) and inserting <quote>the applicable percentage</quote>.</text></paragraph></subsection><subsection id="idA5B3AB6BCC9140B38E5299017B91CC12"><enum>(d)</enum><header>Increase in nonelective employer contribution for electing larger employers</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(p)(2)</external-xref> is amended by adding at the end the following new clause:</text><quoted-block style="OLC" act-name="" id="idA876A48F9BCA4D4C89181E1B4BF149CC"><clause id="id85B843FAEBA04D66B350CEFC4C0754C0"><enum>(iii)</enum><header>Special rule for electing larger employers</header><text>In the case of an employer which had more than 25 employees who received at least $5,000 of compensation from the employer for the preceding year, and which makes the election under subparagraph (E)(i)(II) for any year, clause (i) shall be applied for such year by substituting <quote>3 percent</quote> for <quote>2 percent</quote>.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id86DE1368617B4B98BC5D04DA7B4E2727"><enum>(e)</enum><header>Transition rule</header><text>Paragraph (2) of section 408(p), as amended by this Act, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" act-name="" id="id968600D5576A477291BFC62304472721"><subparagraph commented="no" display-inline="no-display-inline" id="idE271751A4CEF4B67ABBFD9DDA1ACC228"><enum>(H)</enum><header>2-year grace period</header><text>An eligible employer which had not more than 25 employees who received at least $5,000 of compensation from the employer for 1 or more years, and which has more than 25 such employees for any subsequent year, shall be treated for purposes of subparagraph (E)(i) as having 25 such employees for the 2 years following the last year the employer had not more than 25 such employees, and not as having made the election under subparagraph (E)(i)(II) for such 2 years. Rules similar to the second sentence of subparagraph (C)(i)(II) shall apply for purposes of this subparagraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idFF2952A581854A3D89EF150386ECA678"><enum>(f)</enum><header>Amendments apply only if employer has not had another plan within 3 years</header><text>Subparagraph (E) of section 408(p)(2), as amended by subsection (a), is further amended by adding at the end the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id6EDCB01A9FF841C8939BE28145E7A327"><clause id="idE6E7504CA5304C68AF0D6843AC2BD267"><enum>(iii)</enum><header>Employer has not had another plan within 3 years</header><text>An eligible employer is described in this clause only if, during the 3-taxable-year period immediately preceding the 1st year the employer maintains the qualified salary reduction arrangement under this paragraph, neither the employer nor any member of any controlled group including the employer (or any predecessor of either) established or maintained any plan described in clause (i), (ii), or (iv) of section 219(g)(5)(A) with respect to which contributions were made, or benefits were accrued, for substantially the same employees as are eligible to participate in such qualified salary reduction arrangement.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id04403D5A0F9D4D428FF04A8208B9BB07"><enum>(g)</enum><header>Conforming amendments relating to simple <enum-in-header>401(k)</enum-in-header>s</header><paragraph id="id31CEDA553F0D41A68F330B0F7EE0B415"><enum>(1)</enum><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)(11)(B)(i)</external-xref> is amended by inserting <quote>(after the application of any election under section 408(p)(2)(E)(i)(II))</quote> before the comma.</text></paragraph><paragraph id="id1D372ACA45DA4CC9A8AD8E1A735B5AD9"><enum>(2)</enum><text>Paragraph (11) of <external-xref legal-doc="usc" parsable-cite="usc/26/401">section 401(k)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" act-name="" id="id624F009EC693471DA275872DDC9B1471"><subparagraph id="idD991B586B0BE424192C52F74BDC0C5FE"><enum>(E)</enum><header>Employers electing increased contributions</header><text>In the case of an employer which applies an election under section 408(p)(2)(E)(i)(II) for purposes of the contribution requirements of this paragraph under subparagraph (B)(i)(I), rules similar to the rules of subparagraphs (B)(iii), (C)(ii)(IV), and (G) of section 408(p)(2) shall apply for purposes of subparagraphs (B)(i)(II) and (B)(ii) of this paragraph.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id5F61F48961364A6391A482033773B013"><enum>(h)</enum><header>Plan forms to be shared with Secretary</header><paragraph id="id8E80D8F44E0E4503816901CC45B42240"><enum>(1)</enum><header>In general</header><text>Subsection (p) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" act-name="" id="idAFA495234A2B498288D98599A2BC2B68"><paragraph id="id4F3C32E3E582444C9F31B65DAE698216"><enum>(11)</enum><header>Plan arrangement to be shared with Secretary</header><text>The trustee or issuer (in the case of an individual retirement annuity) of a simple retirement account shall provide to the Secretary, at the time the qualified salary reduction arrangement is established (or not later than December 31, 2024, in the case of arrangements in effect on the date of the enactment of this paragraph), a copy of the written arrangement described in paragraph (2)(A).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id39626B84B69D4628A8A0D86D935D536D"><enum>(2)</enum><header>Simple 401(k)s</header><text>Paragraph (11) of section 401(k), as amended by this section, is further amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD5FE9BC433D4431B86C5136C1C314379"><subparagraph id="id20184796CF434079AB287AE92461A3C1"><enum>(F)</enum><header>Plan arrangement to be shared with Secretary</header><text>The plan administrator of a cash and deferred arrangement under this paragraph shall provide to the Secretary, at the time the arrangement is established (or not later than December 31, 2024, in the case of arrangements in effect on the date of the enactment of this paragraph), a written copy of the arrangement.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="id41CBF7B5F2FA438A8763658A9D339000"><enum>(i)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023.</text></subsection><subsection id="id407535bab8384555870a5d5933b33e00"><enum>(j)</enum><header>Reports by Secretary</header><paragraph id="idCC76FC5132D84B01B23E89B12CD9212A"><enum>(1)</enum><header>In general</header><text>The Secretary of the Treasury shall, not later than December 31, 2024, and annually thereafter, report to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate and the Committees on Ways and Means and Education and Labor of the House of Representatives on the data described in paragraph (2), together with any recommendations the Secretary deems appropriate.</text></paragraph><paragraph id="id975A1A7DF08E48D592C7E0B25B5656AC"><enum>(2)</enum><header>Data described</header><text>For purposes of the report required under paragraph (1), the Secretary of the Treasury shall collect data and information on—</text><subparagraph id="id6f9ed62c95fa404991aecea582a073cd"><enum>(A)</enum><text>the number of plans described in section 408(p) or 401(k)(11) of the Internal Revenue Code of 1986 that are maintained or established during a year;</text></subparagraph><subparagraph id="id3e4a99b36d1c4fc18a5a4b511d7f2e79"><enum>(B)</enum><text>the number of participants eligible to participate in such plans for such year;</text></subparagraph><subparagraph id="id4023b2f81b42483db0989372f81333bb"><enum>(C)</enum><text>median contribution amounts for the participants described in subparagraph (B);</text></subparagraph><subparagraph id="idf92209096c6a47a09edcde6c8947274a"><enum>(D)</enum><text>the types of investments that are most common under such plans; and</text></subparagraph><subparagraph id="id7b82fe9bb61e4ec1b01af80892faf18c"><enum>(E)</enum><text>the fee levels charged in connection with the maintenance of accounts under such plans.</text></subparagraph><continuation-text continuation-text-level="paragraph">Such data and information shall be collected separately for each type of plan. For purposes of collecting such data, the Secretary of the Treasury may use such data as is otherwise available to the Secretary for publication and may use such approaches as are appropriate under the circumstances, including the use of voluntary surveys and collaboration on studies.</continuation-text></paragraph></subsection></section><section id="id4DB8F1027ADC4FA0A5959BD100D429B7"><enum>609.</enum><header>Employers allowed to replace simple retirement accounts with safe harbor 401<enum-in-header>(k)</enum-in-header> plans during a year</header><subsection id="id2ADE1F65A7624E3D9BF65A178C6E7624"><enum>(a)</enum><header>In general</header><text>Section 408(p), as amended by this Act, is further amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idD3AEB288AEB94E7099863E36921AFE78"><paragraph id="idB34AA100ECD84E3A93B3538CEAA28ECB"><enum>(12)</enum><header>Replacement of simple retirement accounts with safe harbor plans during plan year</header><subparagraph id="id334877FEDFCD4138BF6360EE85D5F826"><enum>(A)</enum><header>In general</header><text>Subject to the requirements of this paragraph, an employer may elect (in such form and manner as the Secretary may prescribe) at any time during a year to terminate the qualified salary reduction arrangement under paragraph (2), but only if the employer establishes and maintains (as of the day after the termination date) a safe harbor plan to replace the terminated arrangement.</text></subparagraph><subparagraph id="id2B82AD534D7B41E6993E048830E4C557"><enum>(B)</enum><header>Combined limits on contributions</header><text>The terminated arrangement and safe harbor plan shall both be treated as violating the requirements of paragraph (2)(A)(ii) or section 401(a)(30) (whichever is applicable) if the aggregate elective contributions of the employee under the terminated arrangement during its last plan year and under the safe harbor plan during its transition year exceed the sum of—</text><clause id="id73309FB0F9344C569DBCF02F8A91C9B8"><enum>(i)</enum><text>the applicable dollar amount for such arrangement (determined on a full-year basis) under this subsection (after the application of section 414(v)) with respect to the employee for such last plan year multiplied by a fraction equal to the number of days in such plan year divided by 365, and</text></clause><clause id="id7DACE91F67E3443F9D7F78F77B5EF2D6"><enum>(ii)</enum><text>the applicable dollar amount (as so determined) under section 402(g)(1) for such safe harbor plan on such elective contributions during the transition year multiplied by a fraction equal to the number of days in such transition year divided by 365.</text></clause></subparagraph><subparagraph id="idE248C7D82F524445974A07620FD15217"><enum>(C)</enum><header>Transition year</header><text>For purposes of this paragraph, the transition year is the period beginning after the termination date and ending on the last day of the calendar year during which the termination occurs.</text></subparagraph><subparagraph id="id75573108970747D9916AB3C67B9ED140"><enum>(D)</enum><header>Safe harbor plan</header><text>For purposes of this paragraph, the term <term>safe harbor plan</term> means a qualified cash or deferred arrangement which meets the requirements of paragraph (11), (12), (13), or (16) of section 401(k).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id19AC324CA86347628CB37B16BAB5D195"><enum>(b)</enum><header>Waiver of 2-Year withdrawal limitation in case of plans converting to <enum-in-header>401(k)</enum-in-header> or <enum-in-header>403(b)</enum-in-header></header><paragraph commented="no" id="idA304674F21D44D5DA6E4B518F4C06647"><enum>(1)</enum><header>In general</header><text>Paragraph (6) of <external-xref legal-doc="usc" parsable-cite="usc/26/72">section 72(t)</external-xref> is amended—</text><subparagraph commented="no" id="id1E9659BAEF634110AAD0E455D67685A0"><enum>(A)</enum><text>by striking <quote><header-in-text level="paragraph" style="OLC">accounts</header-in-text>.—In the case of</quote> and inserting “<header-in-text level="paragraph" style="OLC">accounts</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id91BD631A733041BDBF040042E2BC0795"><subparagraph commented="no" id="idB63F4DF6ACC64F1C8A142720820D4E7A"><enum>(A)</enum><header>In general</header><text>In the case of</text></subparagraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph commented="no" id="id3CC75EA8FBDB40CEAC7062554064212D"><enum>(B)</enum><text>by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id52C985ADBA8E4E2EB6BFE143FA5F48AA"><subparagraph commented="no" id="id681FD31ED89B4489BFD38EF906EF4D4A"><enum>(B)</enum><header>Waiver in case of plan conversion to <enum-in-header>401(k)</enum-in-header> or <enum-in-header>403(b)</enum-in-header></header><text>In the case of an employee of an employer which terminates the qualified salary reduction arrangement of the employer under section 408(p) and establishes a qualified cash or deferred arrangement described in section 401(k) or purchases annuity contracts described in section 403(b), subparagraph (A) shall not apply to any amount which is paid in a rollover contribution described in section 408(d)(3) into a qualified trust under section 401(k) (but only if such contribution is subsequently subject to the rules of section 401(k)(2)(B)) or an annuity contract described in section 403(b) (but only if such contribution is subsequently subject to the rules of section 403(b)(11)) for the benefit of the employee.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idAC3B26D83A75418F9EC5A4C65D1E3DE9"><enum>(2)</enum><header>Conforming amendment</header><text>Subparagraph (G) of <external-xref legal-doc="usc" parsable-cite="usc/26/408">section 408(d)(3)</external-xref> is amended by striking <quote>72(t)(6)</quote> and inserting <quote>72(t)(6)(A)</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0A8A17A821794E3280AF023046AB6038"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2023. </text></subsection></section><section section-type="subsequent-section" id="id90922581E5224599ABA186A4787C6756"><enum>610.</enum><header>Starter <enum-in-header>401(k)</enum-in-header> plans for employers with no retirement plan</header><subsection id="idB289C45EBE464B3B961A3F091F527201"><enum>(a)</enum><header>In general</header><text>Section 401(k), as amended by this Act, is further amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idF9A5273DA485468D8F30DE2F4EF11C13"><paragraph id="idD79B80210E8040D8A2E63B8372AAF636"><enum>(17)</enum><header>Starter <enum-in-header>401(k)</enum-in-header> deferral-only plans for employers with no retirement plan</header><subparagraph id="idF214017ADCE74B229E49AD6C4B1CA62A"><enum>(A)</enum><header>In general</header><text>A starter 401(k) deferral-only arrangement maintained by an eligible employer shall be treated as meeting the requirements of paragraph (3)(A)(ii).</text></subparagraph><subparagraph id="id89297EA93ED04FE082CFC44AA98E513B"><enum>(B)</enum><header>Starter <enum-in-header>401(k)</enum-in-header> deferral-only arrangement</header><text>For purposes of this paragraph, the term <term>starter 401(k) deferral-only arrangement</term> means any cash or deferred arrangement which meets—</text><clause id="id58BD5B5F6CE543A2917D7000EC5BA6C4"><enum>(i)</enum><text>the automatic deferral requirements of subparagraph (C),</text></clause><clause id="id13337F04F7CB4F26828CA10E9047F15F"><enum>(ii)</enum><text>the contribution limitations of subparagraph (D), and</text></clause><clause id="id6A26C695B8744D60AC60B0195B35E65F"><enum>(iii)</enum><text>the requirements of subparagraph (E) of paragraph (13).</text></clause></subparagraph><subparagraph id="id5A9FA6C050914002A499EAFDD44AF99C"><enum>(C)</enum><header>Automatic deferral</header><clause id="PD6167FBD26624594B06539A9B28C1DD8"><enum>(i)</enum><header>In general</header><text>The requirements of this subparagraph are met if, under the arrangement, each eligible employee is treated as having elected to have the employer make elective contributions in an amount equal to a qualified percentage of compensation.</text></clause><clause id="PAFEECD8E9AC74903A92FD540FFCE17B2"><enum>(ii)</enum><header>Election out</header><text>The election treated as having been made under clause (i) shall cease to apply with respect to any employee if such employee makes an affirmative election—</text><subclause id="PFF5D18180A60401B84FF88BDC39FFBCF"><enum>(I)</enum><text>to not have such contributions made, or</text></subclause><subclause id="P00CB2CB761134D8A9593EDE41CBEA645"><enum>(II)</enum><text>to make elective contributions at a level specified in such affirmative election.</text></subclause></clause><clause id="PA2FF02F551AC45E69CE4D91960CB1BA5"><enum>(iii)</enum><header>Qualified percentage</header><text>For purposes of this subparagraph, the term <term>qualified percentage</term> means, with respect to any employee, any percentage determined under the arrangement if such percentage is applied uniformly and is not less than 3 or more than 15 percent.</text></clause></subparagraph><subparagraph id="id244C4F786D62492587679F0A3B8A682C"><enum>(D)</enum><header>Contribution limitations</header><clause id="id7721172D75534B6C8E7B81E58FD64434"><enum>(i)</enum><header>In general</header><text>The requirements of this subparagraph are met if, under the arrangement—</text><subclause id="id725AD839996F4895933C93606B22FBB3"><enum>(I)</enum><text>the only contributions which may be made are elective contributions of employees described in subparagraph (C), and</text></subclause><subclause id="idDCAD12057DD24010B39AEDCA9F4D54F5"><enum>(II)</enum><text>the aggregate amount of such elective contributions which may be made with respect to any employee for any calendar year shall not exceed $6,000.</text></subclause></clause><clause id="id0A06A2677826440DB5C630C30AD86877"><enum>(ii)</enum><header>Cost-of-living adjustment</header><text>In the case of any calendar year beginning after December 31, 2024, the $6,000 amount under clause (i) shall be adjusted in the same manner as under section 402(g)(4), except that <quote>2023</quote> shall be substituted for <quote>2005</quote>.</text></clause><clause id="id6C818BE0BBD245F6926DFDC425EA3ACE"><enum>(iii)</enum><header>Catch-up contributions for individuals age 50 or over</header><text>In the case of an individual who has attained the age of 50 before the close of the taxable year, the limitation under clause (i)(II) shall be increased by the applicable amount determined under section 219(b)(5)(B)(ii) (after the application of section 219(b)(5)(C)(iii)).</text></clause></subparagraph><subparagraph id="id2499915A5E5D4FBB9201638062FED730"><enum>(E)</enum><header>Eligible employer</header><text>For purposes of this paragraph—</text><clause id="id4E743D01FF014E40B4F4F92232164347"><enum>(i)</enum><header>In general</header><text>The term <term>eligible employer</term> means any employer if the employer does not maintain a qualified plan with respect to which contributions are made, or benefits are accrued, for service in the year for which the determination is being made. If only individuals other than employees described in subparagraph (A) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees described in such subparagraph are eligible to participate.</text></clause><clause id="id3ACA8AC8941241CEAC9FE1CDD3D26769"><enum>(ii)</enum><header>Relief for acquisitions, etc</header><text>Rules similar to the rules of section 408(p)(10) shall apply for purposes of clause (i).</text></clause><clause id="id06420CA259564F35990B8BC7C52BDE2C"><enum>(iii)</enum><header>Qualified plan</header><text>The term <term>qualified plan</term> means a plan, contract, pension, account, or trust described in subparagraph (A) or (B) of paragraph (5) of section 219(g) (determined without regard to the last sentence of such paragraph (5)).</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD2C7FB47264144E4917D0E65531590E3"><enum>(F)</enum><header display-inline="yes-display-inline">Eligible employee</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text><clause commented="no" display-inline="no-display-inline" id="id580F6EBBE8EC44D3BF08180D735043D7"><enum>(i)</enum><header>In general</header><text display-inline="yes-display-inline">The term <term>eligible employee</term> means any employee of the employer who meets the minimum age and service conditions described in section 410(a)(1).</text></clause><clause commented="no" display-inline="no-display-inline" id="id79A32D4BA1EB40799B31CC8A2971BDB9"><enum>(ii)</enum><header>Exclusions</header><text display-inline="yes-display-inline">The employer may elect to exclude from such definition any employee described in paragraph (3) or (4) of section 410(b).</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id6CC5FF16132D4585A69A9AD96EECFCFB"><enum>(b)</enum><header>Certain annuity contracts</header><text>Subsection (b) of section 403, as amended by this Act, is further amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idE2B7B6EC933442838FB300CD2E35C3EA"><paragraph id="idF6F46A0E4E564AACBD3D4987FD0A966F"><enum>(17)</enum><header>Safe harbor deferral-only plans for employers with no retirement plan</header><subparagraph id="id08974280C80B460A9B74F7D0D73AD339"><enum>(A)</enum><header>In general</header><text>A safe harbor deferral-only plan maintained by an eligible employer shall be treated as meeting the requirements of paragraph (12).</text></subparagraph><subparagraph id="idDD75ADD548924FE7BE1E5E3F6D0DEE77"><enum>(B)</enum><header>Safe harbor deferral-only plan</header><text>For purposes of this paragraph, the term <term>safe harbor deferral-only plan</term> means any plan which meets—</text><clause id="id3B7FF899CF474E44B2EE0AF175463C3B"><enum>(i)</enum><text>the automatic deferral requirements of subparagraph (C),</text></clause><clause id="id59BCC0A4E8124EDE96FED8A50C7A831A"><enum>(ii)</enum><text>the contribution limitations of subparagraph (D), and</text></clause><clause id="idF8DDE904948A475A83D58C17C9277FFA"><enum>(iii)</enum><text>the requirements of subparagraph (E) of section 401(k)(13).</text></clause></subparagraph><subparagraph id="id7E5D5DB5115B47B69B857CDE6F16C30F"><enum>(C)</enum><header>Automatic deferral</header><clause id="id278516B3E4F04CB595BF4EF7DA749407"><enum>(i)</enum><header>In general</header><text>The requirements of this subparagraph are met if, under the plan, each eligible employee is treated as having elected to have the employer make elective contributions in an amount equal to a qualified percentage of compensation.</text></clause><clause id="idDCCD66BCF55B4B929CF9F7947650DD4A"><enum>(ii)</enum><header>Election out</header><text>The election treated as having been made under clause (i) shall cease to apply with respect to any eligible employee if such eligible employee makes an affirmative election—</text><subclause id="id1F25787812564941BFC42E0D40895382"><enum>(I)</enum><text>to not have such contributions made, or</text></subclause><subclause id="idCC72B0A7A8DE4AB4AEFE0B21640D73E2"><enum>(II)</enum><text>to make elective contributions at a level specified in such affirmative election.</text></subclause></clause><clause id="id53E91EF5B5874E39B095AEA9C3A9C6C8"><enum>(iii)</enum><header>Qualified percentage</header><text>For purposes of this subparagraph, the term <term>qualified percentage</term> means, with respect to any employee, any percentage determined under the plan if such percentage is applied uniformly and is not less than 3 or more than 15 percent.</text></clause></subparagraph><subparagraph id="id8393D7668C8D44BC8EDE421F271396C7"><enum>(D)</enum><header>Contribution limitations</header><clause id="id8FD4A7AC9A6541CA9E6F973EF6ADF3E1"><enum>(i)</enum><header>In general</header><text>The requirements of this subparagraph are met if, under the plan—</text><subclause id="id91DF90CC4F4840C1B56E432F136F65F6"><enum>(I)</enum><text>the only contributions which may be made are elective contributions of eligible employees, and</text></subclause><subclause id="id863103AB8F3F423891D02AB2F8379E0F"><enum>(II)</enum><text>the aggregate amount of such elective contributions which may be made with respect to any employee for any calendar year shall not exceed $6,000.</text></subclause></clause><clause id="id9B19D0AFA4CE47FA85B96D7B316E2ECB"><enum>(ii)</enum><header>Cost-of-living adjustment</header><text>In the case of any calendar year beginning after December 31, 2024, the $6,000 amount under clause (i) shall be adjusted in the same manner as under section 402(g)(4), except that <quote>2023</quote> shall be substituted for <quote>2005</quote>.</text></clause><clause id="id6E5414DE43314582BA66A1DCFA7507F8"><enum>(iii)</enum><header>Catch-up contributions for individuals age 50 or over</header><text>In the case of an individual who has attained the age of 50 before the close of the taxable year, the limitation under clause (i)(II) shall be increased by the applicable amount determined under section 219(b)(5)(B)(ii) (after the application of section 219(b)(5)(C)(iii)).</text></clause></subparagraph><subparagraph id="idFA62169CA7444BF081FBD3BE619F7EBD"><enum>(E)</enum><header>Eligible employer</header><text>For purposes of this paragraph—</text><clause id="id83A85ADF0614439CAC2C16E73835E2B0"><enum>(i)</enum><header>In general</header><text>The term <term>eligible employer</term> means any employer if the employer does not maintain a qualified plan with respect to which contributions are made, or benefits are accrued, for service in the year for which the determination is being made. If only individuals other than employees described in subparagraph (A) of section 410(b)(3) are eligible to participate in such arrangement, then the preceding sentence shall be applied without regard to any qualified plan in which only employees described in such subparagraph are eligible to participate.</text></clause><clause id="id7ED3A0730B2A44D5B53926A09D4E5EA3"><enum>(ii)</enum><header>Relief for acquisitions, etc</header><text>Rules similar to the rules of section 408(p)(10) shall apply for purposes of clause (i).</text></clause><clause id="idE9817F7C2FB14BFF9F93FB416A768A5E"><enum>(iii)</enum><header>Qualified plan</header><text>The term <term>qualified plan</term> means a plan, contract, pension, account, or trust described in subparagraph (A) or (B) of paragraph (5) of section 219(g) (determined without regard to the last sentence of such paragraph (5)).</text></clause></subparagraph><subparagraph id="idB4B2D43A68434AAC942A124A643FC564"><enum>(F)</enum><header>Eligible employee</header><text>For purposes of this paragraph, the term <term>eligible employee</term> means any employee of the employer other than an employee who is permitted to be excluded under paragraph (12)(A).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id4F267CF60AEE409B91F3A8A5DD899076"><enum>(c)</enum><header>Starter and safe harbor plans not treated as top-Heavy plans</header><text>Subparagraph (H) of section 416(g)(4), as amended by this Act, is further amended—</text><paragraph id="idA7AC8DF0F5B7400A9ECBAF1D3F4D2CC3"><enum>(1)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">arrangements</header-in-text></quote> in the heading and inserting <quote><header-in-text level="subparagraph" style="OLC">arrangements or plans</header-in-text></quote>,</text></paragraph><paragraph id="id1D33A6236E3A49BF8232CEEBACCB0F55"><enum>(2)</enum><text>by striking <quote>, and</quote> at the end of clause (i) and inserting <quote>and matching contributions with respect to which the requirements of paragraph (11), (12), or (13) of section 401(m) are met, or</quote>, and</text></paragraph><paragraph id="id121ed927d19549db87d9031bf6652c29"><enum>(3)</enum><text>by striking clause (ii) and inserting after clause (i) the following new clause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idF8F2EA282D0D4E42B4380FA9851DD1CC"><clause id="id805B8B64B60146CEADB9F3EF5D17ED7D"><enum>(ii)</enum><text>a starter 401(k) deferral-only arrangement described in section 401(k)(17)(B) or a safe harbor deferral-only plan described in section 403(b)(17).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idCA3CB4256A864DF18A122FA5C20AAB52"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after December 31, 2023. </text></subsection></section><section commented="no" display-inline="no-display-inline" id="idCDD4AF0077FB41E9ABE99B74CDB77BED"><enum>611.</enum><header>Credit for small employers that adapt an automatic portability arrangement</header><subsection commented="no" display-inline="no-display-inline" id="idF6B220152F774A08AE47F92E507D7948"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is further amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id218B76A7DC8545E48388095CE7221C52"><section commented="no" display-inline="no-display-inline" id="id2B972FEE372942CEBBB5D89B94ADB706"><enum>45W.</enum><header>Employer automatic portability arrangement credit</header><subsection commented="no" display-inline="no-display-inline" id="id7BD3A415D3FE4332AA827E3B3295992C"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, in the case of an eligible employer, the automatic portability arrangement credit determined under this section for the adoption year is an amount equal to $500.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idFB0B6B4A5F8C475BB8EB5674A54A65F4"><enum>(b)</enum><header>Eligible employer</header><text>For purposes of this section, the term <term>eligible employer</term> has the meaning given the term by section 408(p)(2)(C)(i) (without regard to subclause (II) thereof).</text></subsection><subsection commented="no" display-inline="no-display-inline" id="id791806DBD8B9467B8B147461119CBC34"><enum>(c)</enum><header>Adoption year</header><text>For purposes of this section—</text><paragraph commented="no" display-inline="no-display-inline" id="idDAE86AF82E3E4C2C9E450EE98EA147C0"><enum>(1)</enum><header>In general</header><text>The term <term>adoption year</term> means the taxable year during which the eligible employer first adopts an automatic portability arrangement as part of an eligible plan maintained by the employer.</text></paragraph><paragraph id="id8814aa7b14f24d27bbcb5fd696ac1324"><enum>(2)</enum><header>Automatic portability arrangement</header><subparagraph id="idA973A2A13B364504A596F27F5D88EF05"><enum>(A)</enum><header>In general</header><text>The term <term>automatic portability arrangement</term> means an arrangement providing for automatic portability transactions.</text></subparagraph><subparagraph id="idFA4D494311F24A33B76AC69F3AE49371"><enum>(B)</enum><header>Automatic portability transaction</header><text>The term <term>automatic portability transaction</term> means a transaction in which amounts distributed pursuant to section 401(a)(31)(B)(i) from a plan to an individual retirement plan established on behalf of an individual are subsequently transferred to an eligible plan in which such individual is an active participant, after such individual has been given advance notice of the transfer and has not affirmatively opted out of such transfer.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id458FE00068AF447998BC80675219DCD7"><enum>(3)</enum><header>Eligible plan</header><text>The term <term>eligible plan</term> means a qualified employer plan as defined in section 4972(d)(1), other than a defined benefit plan.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="idD5C342D20FF741B89C6A3C0AF92C24D1"><enum>(b)</enum><header>Credit to be part of general business credit</header><text>Subsection (b) of section 38, as amended by this Act, is further amended by striking <quote>plus</quote> at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idB74D6FF4530047C692B95754C7E74345"><paragraph commented="no" display-inline="no-display-inline" id="idE27EC4A83E814A56B5FDB70B2CBDA26A"><enum>(36)</enum><text>in the case of an eligible employer (as defined in section 45W(b)), the automatic portability arrangement credit determined under section 45W(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id1914061F0BDC471989E128286385D04D"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is further amended by adding at the end the following new item:</text><quoted-block style="OLC" id="id14f6d82d-70c8-4b81-88f1-5b591709500d"><toc><toc-entry level="section" idref="id2B972FEE372942CEBBB5D89B94ADB706">Sec. 45W. Employer automatic portability arrangement credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="idBF2D62F91A4D40EBBDEC0F0930532ADA"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. </text></subsection></section><section commented="no" id="id4ff648402eb748a1a038a3a62fffa4f7"><enum>612.</enum><header>Re-enrollment credit</header><subsection commented="no" id="id3663c791d6ff4d24bc4f36b4e0c04a32"><enum>(a)</enum><header>In general</header><text>Subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is further amended by adding at the end the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id7a5f735853fc4a3db5ae054c757c4079"><section commented="no" id="id63fc9316a49f4dc8973e8865d3e18a87"><enum>45X.</enum><header>Credit for re-enrollment provisions in plans provided by small employers</header><subsection commented="no" id="id9d7121c149934ff68eb628d7abe79817"><enum>(a)</enum><header>In general</header><text>For purposes of section 38, in the case of an eligible employer, the retirement re-enrollment credit determined under this section for any taxable year is an amount equal to—</text><paragraph commented="no" id="idc5324b765f744bda82dd1f558e6dccf2"><enum>(1)</enum><text>$500 for any taxable year occurring during the credit period, and</text></paragraph><paragraph commented="no" id="id78fa8c0eb20b4c80bed02634b5b626f8"><enum>(2)</enum><text>zero for any other taxable year.</text></paragraph></subsection><subsection commented="no" id="id823f88bdf49a4be6af28c014ac379331"><enum>(b)</enum><header>Credit period</header><text>For purposes of subsection (a)—</text><paragraph commented="no" id="ida8ad0c31232449e68451c65519862032"><enum>(1)</enum><header>In general</header><text>The credit period with respect to any eligible employer is the 3-taxable-year period beginning with the first taxable year for which the employer includes a re-enrollment provision in an eligible automatic contribution arrangement (as defined in section 414(w)(3)) in a qualified employer plan (as defined in section 4972(d)) maintained by the employer.</text></paragraph><paragraph commented="no" id="idaf8bc9a461ec47fd8ac135d8b882ff1e"><enum>(2)</enum><header>Maintenance of arrangement</header><text>No taxable year with respect to an employer shall be treated as occurring within the credit period unless the provision described in paragraph (1) is included in the plan for such year.</text></paragraph></subsection><subsection commented="no" id="id4f3c988c649a43939bdedf296418000b"><enum>(c)</enum><header>Eligible employer</header><text>For purposes of this section, the term <term>eligible employer</term> has the meaning given such term in section 408(p)(2)(C)(i).</text></subsection><subsection commented="no" id="id64c017e5445248cb9fa9804d9ebe53ec"><enum>(d)</enum><header>Re-Enrollment provision</header><text>For purposes of this section, the term <term>re-enrollment provision</term> means a provision of an eligible automatic contribution arrangement under which—</text><paragraph commented="no" id="idcef145fc61f2483889868aba3db7b319"><enum>(1)</enum><header>In general</header><text>Each employee eligible to participate in the arrangement who is not contributing or is contributing less than the percentage applicable to an eligible employee in the first year of eligibility is treated as being in such first year of eligibility in each applicable year with respect to the employee.</text></paragraph><paragraph commented="no" id="idffe0dc49c2ca4ef4845e4dadee3a8197"><enum>(2)</enum><header>Election out</header><text>The election treated as having been made under paragraph (1) shall cease to apply with respect to any employee if such employee makes an affirmative election—</text><subparagraph commented="no" id="id1d4afe8bb753422d904f097dab48db44"><enum>(A)</enum><text>to not have such contributions made, or</text></subparagraph><subparagraph commented="no" id="idb2c700e078d84e85bc98ecf467d54031"><enum>(B)</enum><text>to make elective contributions at a level specified in such affirmative election.</text></subparagraph></paragraph><paragraph commented="no" id="idac2a4e8fdeab45569af73825713a3583"><enum>(3)</enum><header>Applicable year every third year</header><subparagraph commented="no" id="id22f7ab2cc4874090ba82bfc37ebe4730"><enum>(A)</enum><header>In general</header><text>For purposes of this section, the term <term>applicable year</term> means, with respect to an employee, such employee’s first plan year of eligibility under the arrangement, and all subsequent plan years of eligibility.</text></subparagraph><subparagraph commented="no" id="idf374772addec4a92b5687ac25e6ab7aa"><enum>(B)</enum><header>Exception</header><text>Following any applicable year of an employee (determined after the application of this subparagraph), the plan may elect to treat the next 1 or 2 plan years as not being applicable years with respect to such employee.</text></subparagraph></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="id305128aca02045bbbef0c9687d1557f1"><enum>(b)</enum><header>Credit to be part of general business credit</header><text>Subsection (b) of section 38, as amended by this Act, is further amended by striking <quote>plus</quote> at the end of paragraph (35), by striking the period at the end of paragraph (36) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idf01f92700665441d9367f91d9f640426"><paragraph commented="no" id="id57ca01a9985240d6859c1776b3f4640f"><enum>(37)</enum><text>in the case of an eligible employer (as defined in section 45X(c)), the retirement re-enrollment credit determined under section 45X(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="idE12FC95686F34AA2A6FD0FBAD33A2050"><enum>(c)</enum><header>Treatment of credit for certified professional employer organizations</header><text>Paragraph (2) of section 3511(d), as amended by this Act, is further amended—</text><paragraph commented="no" id="idA1CCB6F382FD456D8A76C1951F432C12"><enum>(1)</enum><text>by redesignating subparagraphs (H), (I), (J), and (K) as subparagraphs (I), (J), (K), and (L) respectively, and</text></paragraph><paragraph commented="no" id="id704D745F20474B608C0F5E96B9DD798C"><enum>(2)</enum><text>by inserting after subparagraph (G) the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4DE14A2E8E354C20924F2E23A45052E8"><subparagraph commented="no" id="id7F4D3BB54EDC480BBE24CD30F948890B"><enum>(H)</enum><text>section 45X (retirement re-enrollment credit),</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="idfaeb2a0809814ae0b632cc3b62c4fadd"><enum>(d)</enum><header>Clerical amendment</header><text>The table of sections for subpart D of part IV of subchapter A of chapter 1, as amended by this Act, is further amended by inserting after the item relating to section 45W the following new item:</text><quoted-block style="OLC" id="idf6e38016-c2bb-4a4e-9f88-ffbe89adfb73"><toc><toc-entry idref="id63fc9316a49f4dc8973e8865d3e18a87" level="section">Sec. 45X. Credit for re-enrollment provisions in plans provided by small employers.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id11dab671f60e47f59c0463c1f9a796be"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023. </text></subsection></section><section id="idcddefa3911ab4741bf130fd1b9641cfa"><enum>613.</enum><header>Corrections of mortality tables</header><subsection id="idfbae2252e3a34f518a983b3efee7b96f"><enum>(a)</enum><header>In general</header><text>Not later than 18 months after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary's delegate) shall amend the regulation relating to <quote>Mortality Tables for Determining Present Value Under Defined Benefit Pension Plans</quote> (82 Fed. Reg. 46388 (October 5, 2017)). Under such amendment, for valuation dates occurring during or after 2022, such mortality improvement rates shall not assume future mortality improvements at any age which are greater than .78 percent. The Secretary of the Treasury (or delegate) shall by regulation modify the .78 percent figure in the preceding sentence as necessary to reflect material changes in the overall rate of improvement projected by the Social Security Administration.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="idbfa453323a8a40d9ad5dddb5660d0b63"><enum>(b)</enum><header>Effective date</header><text>The amendments required under subsection (a) shall be deemed to have been made as of the date of the enactment of this Act, and as of such date all applicable laws shall be applied in all respects as though the actions which the Secretary of the Treasury (or the Secretary's delegate) is required to take under such subsection had been taken. </text></subsection></section><section id="id164924c84b0547209cd27a01690104a4"><enum>614.</enum><header>Enhancing retiree health benefits in pension plans</header><subsection id="id035799a30147422e923b84d576d54f50"><enum>(a)</enum><header>Extension of transfers of excess pension assets to retiree health accounts</header><text>Paragraph (4) of <external-xref legal-doc="usc" parsable-cite="usc/26/420">section 420(b)</external-xref> is amended by striking <quote>December 31, 2025</quote> and inserting <quote>December 31, 2032</quote>.</text></subsection><subsection id="id3d09dcb85d004915bfae489f03c1d294"><enum>(b)</enum><header>De minimis transfer rule</header><paragraph id="ida340402997bc49b6abfeffe102ea31aa"><enum>(1)</enum><header>In general</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/420">section 420</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id716a8380bf0b476996f53dc5818f5045"><paragraph id="id4C0A808515CC4AE884700204FED80362"><enum>(7)</enum><header>Special rule for de minimis transfers</header><subparagraph id="idD215B6655BD340E39CBC2F968CC349B5"><enum>(A)</enum><header>In general</header><text>In the case of a transfer of an amount which is not more than 1.75 percent of the amount determined under paragraph (2)(A) by a plan which meets the requirements of subparagraph (B), paragraph (2)(B) shall be applied by substituting <quote>110 percent</quote> for <quote>125 percent</quote>.</text></subparagraph><subparagraph id="id10F5271F60A14E569A1193E988E0F4C6"><enum>(B)</enum><header>Two-year lookback requirement</header><text>A plan is described in this subparagraph if, as of any valuation date in each of the 2 plan years immediately preceding the plan year in which the transfer occurs, the amount determined under paragraph (2)(A) exceeded 110 percent of the sum of the funding target and the target normal cost determined under section 430 for each such plan year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id977cf4e690eb491eb3d86c7958b292fd"><enum>(2)</enum><header>Cost maintenance period</header><text>Subparagraph (D) of <external-xref legal-doc="usc" parsable-cite="usc/26/420">section 420(c)(3)</external-xref> is amended by striking <quote>5 taxable years</quote> and inserting <quote>5 taxable years (7 taxable years in the case of a transfer to which subsection (e)(7) applies)</quote>.</text></paragraph><paragraph id="id01d3c6a024c84e62b72fc768ac1bf5f6"><enum>(3)</enum><header>Conforming amendments</header><subparagraph id="idc5a5b5ce9f094a1f885baf945db2defa"><enum>(A)</enum><header>Excess pension assets</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/420">section 420(f)(2)(B)</external-xref> is amended—</text><clause id="idB5B2F4663B1F42C89705205E56FA1238"><enum>(i)</enum><text>by striking <quote><header-in-text level="clause" style="OLC">In general</header-in-text>.—In</quote> and inserting “<header-in-text level="clause" style="OLC">In general</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="idfb20740a1c52460d8382f0463b568949"><subclause id="id7e261074c7664444a8d152a7261b48bc"><enum>(I)</enum><header>Determination</header><text>In</text></subclause><after-quoted-block>,</after-quoted-block></quoted-block></clause><clause id="idB5A85469E3034AECA2F821E13FD09F38"><enum>(ii)</enum><text>by striking <quote>subsection (e)(2)</quote> and inserting <quote>subsection (e)(2)(B)</quote>, and</text></clause><clause id="id3F361F60FE274AC9A4D4E50519C6E352"><enum>(iii)</enum><text>by adding at the end the following new subclause:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2EE28EEC3A0542F093A45124C80ACCE6"><subclause id="id5b130ede25b943aabf88654730a96686"><enum>(II)</enum><header>Special rule for collectively bargained transfers</header><text>In determining excess pension assets for purposes of a collectively bargained transfer, subsection (e)(7) shall not apply.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block></clause></subparagraph><subparagraph id="id0707e47092ba43ff8b1c690dd029f760"><enum>(B)</enum><header>Minimum cost</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/420">section 420(f)(2)(D)(i)</external-xref> is amended by striking <quote>4th year</quote> and inserting <quote>4th year (the 6th year in the case of a transfer to which subsection (e)(7) applies)</quote>.</text></subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id2092BD3F3B0649E38147FA157061F9D4"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to transfers made after the date of the enactment of this Act. </text></subsection></section><section id="H9D1001281E104A31B78042C390628330"><enum>615.</enum><header>Deferral of tax for certain sales of employer stock to employee stock ownership plan sponsored by S corporation</header><subsection id="HD7CC7B5DBCD746D6BF3CFE9CB86194C4"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1042">Section 1042(c)(1)(A)</external-xref> is amended by striking <quote>domestic C corporation</quote> and inserting <quote>domestic corporation</quote>.</text></subsection><subsection commented="no" id="H7470A8B284104A2CAB6D1985A2029234"><enum>(b)</enum><header>10 percent limitation on application of gain on sale of S corporation stock</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/1042">Section 1042</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HDA747E813E0C497996DF7863D759778A"><subsection id="H269FA4F153354FB49A69EE487FAABA7A"><enum>(h)</enum><header>Application of section to sale of stock in S corporation</header><text>In the case of the sale of qualified securities of an S corporation, the election under subsection (a) may be made with respect to not more than 10 percent of the amount realized on such sale for purposes of determining the amount of gain not recognized and the extent to which (if at all) the amount realized on such sale exceeds the cost of qualified replacement property. The portion of adjusted basis that is properly allocable to the portion of the amount realized with respect to which the election is made under this subsection shall be taken into account for purposes of the preceding sentence.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="HCF571AB8B52D4481A64A1A324C8731A5"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to sales after December 31, 2027.</text></subsection></section><enum>VII</enum><header>Notices</header><section id="H4918428B101D4DB1AFEB5B3FD3E839E5"><enum>701.</enum><header>Review and report to Congress relating to reporting and disclosure requirements</header><subsection id="H05DAEB09E166432D97009628730DDAE0"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">As soon as practicable after the date of enactment of this Act, the Secretary of Labor, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation shall review the reporting and disclosure requirements as applicable to each such agency head, of—</text><paragraph id="H654329C817BC448DBE3E9155166E9CA4"><enum>(1)</enum><text>the Employee Retirement Income Security Act of 1974 applicable to pension plans (as defined in section 3(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/29/1002">29 U.S.C. 1002(2)</external-xref>); and</text></paragraph><paragraph id="HE6125B9775AC4B48AAACB2311E081CDB"><enum>(2)</enum><text>the Internal Revenue Code of 1986 applicable to qualified retirement plans (as defined in section 4974(c) of such Code, without regard to paragraphs (4) and (5) of such section).</text></paragraph></subsection><subsection id="H3762B03723DC4D0A80235F96972E3DF5"><enum>(b)</enum><header>Report</header><paragraph id="H111D6B65F6F54FD98F6B6E4605DAB868"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 2 years after the date of enactment of this Act, the Secretary of Labor, the Secretary of the Treasury, and the Director of the Pension Benefit Guaranty Corporation, jointly, and after consultation with a balanced group of participant and employer representatives, shall with respect to plans referenced in subsection (a) report on the effectiveness of the applicable reporting and disclosure requirements and make such recommendations as may be appropriate to the Committee on Education and Labor and the Committee on Ways and Means of the House of Representatives and the Committee on Health, Education, Labor, and Pensions and the Committee on Finance of the Senate to consolidate, simplify, standardize, and improve such requirements so as to simplify reporting for such plans and ensure that plans can furnish and participants and beneficiaries timely receive and better understand the information they need to monitor their plans, plan for retirement, and obtain the benefits they have earned.</text></paragraph><paragraph id="H52A58F64A75C478DA31EF3CA9FB9EF26"><enum>(2)</enum><header>Analysis of effectiveness</header><text>To assess the effectiveness of the applicable reporting and disclosure requirements, the report shall include an analysis, based on plan data, of how participants and beneficiaries are providing preferred contact information, the methods by which plan sponsors and plans are furnishing disclosures, and the rate at which participants and beneficiaries (grouped by key demographics) are receiving, accessing, understanding, and retaining disclosures.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H28C5134D06DF44268DD8385777133E93"><enum>(3)</enum><header>Collection of information</header><text>The agencies shall conduct appropriate surveys and data collection to obtain any needed information.</text></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" section-type="subsequent-section" id="H529E85BA09BE4922B5470ACCE7C95A1D"><enum>702.</enum><header display-inline="yes-display-inline">Report to Congress on section 402(f) notices</header><text display-inline="no-display-inline">Not later than 18 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Committees on Finance and Health, Education, Labor, and Pensions of the Senate and the Committees on Ways and Means and Education and Labor of the House of Representatives on the notices provided by retirement plan administrators to plan participants under <external-xref legal-doc="usc" parsable-cite="usc/26/402">section 402(f)</external-xref> of the Internal Revenue Code of 1986. The report shall analyze the effectiveness of such notices and make recommendations, as warranted by the findings, to facilitate better understanding by recipients of different distribution options and corresponding tax consequences, including spousal rights. </text></section><section commented="no" id="id69c9724c91614b499be877febf3e7098"><enum>703.</enum><header>Eliminating unnecessary plan requirements related to unenrolled participants</header><subsection commented="no" id="idd6f7475838ce439790c463045b074f89"><enum>(a)</enum><header>In general</header><text>Section 414, as amended by this Act, is further amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC090073DCEF645CF98131E90A6658799"><subsection commented="no" id="idACE66EEDE98941C5AB074A1F111CB11E"><enum>(bb)</enum><header>Eliminating unnecessary plan requirements related to unenrolled participants</header><paragraph commented="no" id="id95173223443942769aa0949e8096c87f"><enum>(1)</enum><header>In general</header><text>Notwithstanding any other provision of this title, with respect to any defined contribution plan, no disclosure, notice, or other plan document (other than the notices and documents described in subparagraphs (A) and (B)) shall be required to be furnished under this title to any unenrolled participant if the unenrolled participant receives—</text><subparagraph commented="no" id="id68fd3dacad9b4f7eaa3b64f632c34b7c"><enum>(A)</enum><text>an annual reminder notice of such participant’s eligibility to participate in such plan and any applicable election deadlines under the plan, and</text></subparagraph><subparagraph commented="no" id="id830888ece0894ba2a4877c341066a16b"><enum>(B)</enum><text>any document requested by such participant which the participant would be entitled to receive notwithstanding this subsection.</text></subparagraph></paragraph><paragraph commented="no" id="idF89E525820AE49D8A75A89BBFF10C64F"><enum>(2)</enum><header>Unenrolled participant</header><text>For purposes of this subsection, the term <term>unenrolled participant</term> means an employee who—</text><subparagraph commented="no" id="id56441B5DE3F84262A82B1792C1DED186"><enum>(A)</enum><text>is eligible to participate in a defined contribution plan,</text></subparagraph><subparagraph commented="no" id="idF4D22E6D44964FCEAAE17471B33BCF65"><enum>(B)</enum><text>has received—</text><clause commented="no" id="idE7DD718411E74ED2B9A7038C95EEA06E"><enum>(i)</enum><text>the summary plan description pursuant to section 104(b) of the Employee Retirement Income Security Act of 1974, and </text></clause><clause commented="no" id="id93CC78A8A65F4AE694513DB9F88C34DD"><enum>(ii)</enum><text>any other notices related to eligibility under the plan which are required to be furnished under this title or the Employee Retirement Income Security Act of 1974 in connection with such participant’s initial eligibility to participate in such plan,</text></clause></subparagraph><subparagraph commented="no" id="id5EBDE39E43F445F981C8A933E862C056"><enum>(C)</enum><text>is not participating in such plan,</text></subparagraph><subparagraph commented="no" id="idC2D191C50D46493896737C3910F366A2"><enum>(D)</enum><text>does not have an account balance in the plan, and</text></subparagraph><subparagraph commented="no" id="id9695D3E2456C4C7BBD74686433A4C4F0"><enum>(E)</enum><text>satisfies such other criteria as the Secretary may determine appropriate, as prescribed in guidance issued in consultation with the Secretary of Labor. </text></subparagraph><continuation-text commented="no" continuation-text-level="paragraph">For purposes of this subsection, any eligibility to participate in the plan following any period for which such employee was not eligible to participate shall be treated as initial eligibility.</continuation-text></paragraph><paragraph commented="no" id="idc8c2177f68d24cb5934fc022580461be"><enum>(3)</enum><header>Annual reminder notice</header><text>For purposes of this subsection, the term <term>annual reminder notice</term> means the notice described in section 111(c) of the Employee Retirement Income Security Act of 1974.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="id92d5caf3bb42441a83c76d6da2a77d4d"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to plan years beginning after the date of the enactment of this Act. </text></subsection></section><enum>VIII</enum><header>Technical modifications</header><section id="H6B0BE35CB0D4446EB99CB40E5385C853"><enum>801.</enum><header>Repayment of qualified birth or adoption distribution limited to <enum-in-header>3</enum-in-header> years</header><subsection id="HEDE63E260E2A44E0BD633A7325413FDC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/72">Section 72(t)(2)(H)(v)(I)</external-xref> is amended by striking <quote>may make</quote> and inserting <quote>may, at any time during the 3-year period beginning on the day after the date on which such distribution was received, make</quote>.</text></subsection><subsection commented="no" display-inline="no-display-inline" id="H28829F407129453D87952C3AD39F6D4F"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall take effect as if included in the enactment of section 113 of the Setting Every Community Up for Retirement Enhancement Act of 2019.</text></subsection></section><section section-type="subsequent-section" id="H293802DEC49D4B41836A7D68E2356C0A"><enum>802.</enum><header>Amendments relating to Setting Every Community Up for Retirement Enhancement Act of <enum-in-header>2019</enum-in-header></header><subsection id="H2A412127FC1E49B099DC2A545235187D"><enum>(a)</enum><header>Technical amendments</header><paragraph id="HE4FFC9A4CD6445338270B1377A5FDCCE"><enum>(1)</enum><header>Amendments relating to section 103</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(m)(12)</external-xref> is amended by striking <quote>and</quote> at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) (as so amended) the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H217697EE651C40C89D42553DEAF70513"><subparagraph commented="no" id="H225D251874B0460A94BEFE26DD62051C"><enum>(B)</enum><text display-inline="yes-display-inline">meets the notice requirements of subsection (k)(13)(E), and</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD24AFDC6E63947BFBC41C3BB0815EBF9"><enum>(2)</enum><header>Amendments relating to section 112</header><subparagraph commented="no" display-inline="no-display-inline" id="id25BA62CD7D214288BE13744DD334CB62"><enum>(A)</enum><text display-inline="yes-display-inline">Section 401(k)(15)(B)(i)(II), as amended by this Act, is further amended by striking <quote>subsection (m)(2)</quote> and inserting <quote>paragraphs (2), (11), and (12) of subsection (m)</quote>. </text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id0EA21EAA8E6C40798B2EE89F5488F512"><enum>(B)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(15)(B)(iii)</external-xref> is amended by striking <quote>under the arrangement</quote> and inserting <quote>under the plan</quote>.</text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2F05EB5566EA4AB8A162A065E62D6629"><enum>(C)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(15)(B)(iv)</external-xref> is amended by striking <quote>section 410(a)(1)(A)(ii)</quote> and inserting <quote>paragraph (2)(D)</quote>.</text></subparagraph></paragraph><paragraph id="H0532DE5D4B3D4A26A8AA6F6E504E39E1"><enum>(3)</enum><header>Amendment relating to section 116</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/4973">Section 4973(b)</external-xref> is amended by adding at the end of the flush matter the following: <quote>Such term shall not include any designated nondeductible contribution (as defined in subparagraph (C) of section 408(o)(2)) which does not exceed the nondeductible limit under subparagraph (B) thereof by reason of an election under section 408(o)(5).</quote>.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HFE30035FF446420AA3C136232D355E87"><enum>(b)</enum><header>Clerical amendments</header><paragraph commented="no" display-inline="no-display-inline" id="id23C6D1688CAD4BFFA977490B4795C5AA"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/72">Section 72(t)(2)(H)(vi)(IV)</external-xref> is amended by striking <quote>403(b)(7)(A)(ii)</quote> and inserting <quote> 403(b)(7)(A)(i)</quote>. </text></paragraph><paragraph id="HBF00723C2C06442CB79D1C52E77078D9"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(12)(G)</external-xref> is amended by striking <quote>the requirements under subparagraph (A)(i)</quote> and inserting <quote>the contribution requirements under subparagraph (B) or (C)</quote>.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H21EACE1158BD46B8B422B0FC0750A535"><enum>(3)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(k)(13)(D)(iv)</external-xref> is amended by striking <quote>and (F)</quote> and inserting <quote>and (G)</quote>. </text></paragraph><paragraph id="H85C10AACDED34CFE8869FE39710B3CE3"><enum>(4)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/408">Section 408(o)(5)(A)</external-xref> is amended by striking <quote>subsection (b)</quote> and inserting <quote>section 219(b)</quote>. </text></paragraph></subsection><subsection id="HFEB01F0F98574596AF5A8CCD8269B492"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall take effect as if included in section of the Setting Every Community Up for Retirement Enhancement Act of 2019 to which the amendment relates. </text></subsection></section><section id="idB8E01BD21592470AA9EC9E0B17683673"><enum>803.</enum><header>Modification of required minimum distribution rules for special needs trusts</header><subsection id="id2CE5906B4A5E4AFBACFF3637756E8CBA"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)(9)(H)(iv)(II)</external-xref> is amended by striking <quote>no individual</quote> and inserting <quote>no beneficiary</quote>.</text></subsection><subsection id="idDA4BAB33CBF34CC68F4F55DEF5BE1C45"><enum>(b)</enum><header>Conforming amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/401">Section 401(a)(9)(H)(v)</external-xref> is amended by adding at the end the following flush sentence:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id2FF15E3BD7F64545BE41F471E15D5304"><quoted-block-continuation-text quoted-block-continuation-text-level="clause">For purposes of the preceding sentence, in the case of a trust the terms of which are described in clause (iv)(II), any beneficiary which is an organization described in section 408(d)(8)(B)(i) shall be treated as a designated beneficiary described in subclause (II).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="id2D27AAD20DC746968E97E726822FF4E8"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to calendar years beginning after the date of the enactment of this Act.</text></subsection></section><enum>IX</enum><header>Plan amendments</header><section id="H9F144D4D46DD4210B44555CD5E9A5FBF"><enum>901.</enum><header>Provisions relating to plan amendments</header><subsection id="HA67A8C864B1F4430A836E5D7CE5FF892"><enum>(a)</enum><header>In general</header><text>If this section applies to any retirement plan or contract amendment—</text><paragraph id="H06149B312CA1403EB78FBCF1678A6FB7"><enum>(1)</enum><text>such retirement plan or contract shall be treated as being operated in accordance with the terms of the plan during the period described in subsection (b)(2)(A); and</text></paragraph><paragraph id="H44BC6DC6F7E34D14B248B69960F73F0A"><enum>(2)</enum><text>to the extent provided by the Secretary of the Treasury (or the Secretary’s delegate), such retirement plan shall not fail to meet the requirements of <external-xref legal-doc="usc" parsable-cite="usc/26/411">section 411(d)(6)</external-xref> of the Internal Revenue Code of 1986 and section 204(g) of the Employee Retirement Income Security Act of 1974 by reason of such amendment.</text></paragraph></subsection><subsection id="H648025C6AF6A4743A19093CF43A3EE4A"><enum>(b)</enum><header>Amendments to which section applies</header><paragraph id="HBC3334D41EE94E5EBBF5991A6F6AE18F"><enum>(1)</enum><header>In general</header><text>This section shall apply to any amendment to any retirement plan or annuity contract which is made—</text><subparagraph id="HDFF1C038D0074257A45FB210FCC46814"><enum>(A)</enum><text>pursuant to any amendment made by this Act or pursuant to any regulation issued by the Secretary of the Treasury or the Secretary of Labor (or a delegate of either such Secretary) under this Act; and</text></subparagraph><subparagraph id="HE708437C6CE7429CB30083C010624F8A"><enum>(B)</enum><text display-inline="yes-display-inline">on or before the last day of the first plan year beginning on or after January 1, 2024, or such later date as the Secretary of the Treasury may prescribe.</text></subparagraph><continuation-text continuation-text-level="paragraph">In the case of a governmental plan (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/414">section 414(d)</external-xref> of the Internal Revenue Code of 1986), or an applicable collectively bargained plan, this paragraph shall be applied by substituting <quote>2026</quote> for <quote>2024</quote>. For purposes of the preceding sentence, the term <quote>applicable collectively bargained plan</quote> means 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. </continuation-text></paragraph><paragraph id="H56E04600F58A48A48FBBC5B9A24FD72F"><enum>(2)</enum><header>Conditions</header><text>This section shall not apply to any amendment unless—</text><subparagraph id="H03DD7DF28603430D8F868FCF0A11ED05"><enum>(A)</enum><text>during the period—</text><clause id="H015014DD60A6440794D152799D741542"><enum>(i)</enum><text>beginning on the date the legislative or regulatory amendment described in paragraph (1)(A) takes effect (or in the case of a plan or contract amendment not required by such legislative or regulatory amendment, the effective date specified by the plan); and</text></clause><clause id="HB696EB7D206943B98857E141A55CA538"><enum>(ii)</enum><text>ending on the date described in paragraph (1)(B) (as modified by the second sentence of paragraph (1)) (or, if earlier, the date the plan or contract amendment is adopted),</text></clause><continuation-text continuation-text-level="subparagraph">the plan or contract is operated as if such plan or contract amendment were in effect; and </continuation-text></subparagraph><subparagraph id="H5A36980B4738443D90266031FCD4F010"><enum>(B)</enum><text>such plan or contract amendment applies retroactively for such period.</text></subparagraph></paragraph></subsection><subsection id="HF3B55D5319D3465AA2CD17497C25E216"><enum>(c)</enum><header>Coordination with other provisions relating to plan amendments</header><paragraph id="H3675AFC3466A4215B6B7126532B5A8EE"><enum>(1)</enum><header><enum-in-header>SECURE</enum-in-header> Act</header><text display-inline="yes-display-inline">Section 601(b)(1) of the Setting Every Community Up for Retirement Enhancement Act of 2019 is amended—</text><subparagraph id="H8FDDA6D7890840EF86EC31237C54E24E"><enum>(A)</enum><text>by striking <quote>January 1, 2022</quote> in subparagraph (B) and inserting <quote>January 1, 2024</quote>, and</text></subparagraph><subparagraph id="H54D27DF7D39149AC95F2ED1EB2EDD820"><enum>(B)</enum><text>by striking <quote>substituting <quote>2024</quote> for <quote>2022</quote>.</quote> in the flush matter at the end and inserting <quote>substituting <quote>2026</quote> for <quote>2024</quote>.</quote>.</text></subparagraph></paragraph><paragraph id="H8E92B932062B4B99BE04806AE912E3CA"><enum>(2)</enum><header><enum-in-header>CARES</enum-in-header> Act</header><subparagraph id="H0296E20113CA418198975B4A48D2543B"><enum>(A)</enum><header>Special rules for use of retirement funds</header><text>Section 2202(c)(2)(A) of the CARES Act is amended by striking <quote>January 1, 2022</quote> in clause (ii) and inserting <quote>January 1, 2024</quote>.</text></subparagraph><subparagraph id="H710F8D9825EF45218DA70B0588E58B86"><enum>(B)</enum><header>Temporary waiver of required minimum distributions rules for certain retirement plans and accounts</header><text>Section 2203(c)(2)(B)(i) of the CARES Act is amended—</text><clause id="HAB99B2DCA82D4A9597C8642FB3E6ADF4"><enum>(i)</enum><text>by striking <quote>January 1, 2022</quote> in subclause (II) and inserting <quote>January 1, 2024</quote>, and</text></clause><clause id="HF7CE04A1A5F047A4BB20D3C524DE235F"><enum>(ii)</enum><text>by striking <quote>substituting <quote>2024</quote> for <quote>2022</quote>.</quote> in the flush matter at the end and inserting <quote>substituting <quote>2026</quote> for <quote>2024</quote>.</quote>.</text></clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H3D499D6E142D40AEB9E36D7F74FCF66D"><enum>(C)</enum><header>Taxpayer Certainty and Disaster Tax Relief Act of 2020</header><text display-inline="yes-display-inline">Section 302(d)(2)(A) of the Taxpayer Certainty and Disaster Tax Relief Act of 2020 is amended by striking <quote>January 1, 2022</quote> in clause (ii) and inserting <quote>January 1, 2024</quote>.</text></subparagraph></paragraph></subsection></section><enum>X</enum><header>Tax Court retirement provisions</header><section section-type="subsequent-section" id="id879BC897E70A4900BE327FE10880FFD2"><enum>1001.</enum><header>Provisions relating to judges of the Tax Court</header><subsection id="ID2812b62e93334768912b5d2a970e1af5"><enum>(a)</enum><header>Thrift Savings Plan contributions for judges in the Federal Employees Retirement System</header><paragraph id="ID028bc471357d4c489192f95e177a851d"><enum>(1)</enum><header>In general</header><text>Subsection (j)(3)(B) of <external-xref legal-doc="usc" parsable-cite="usc/26/7447">section 7447</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id30138F10125A45B4A58E38B9EB5A3F3D"><subparagraph id="ID925e801b119f4e228f33c53570ab60b1"><enum>(B)</enum><header>Contributions for benefit of judge</header><text>No contributions under section 8432(c) of title 5, United States Code, shall be made for the benefit of a judge who has filed an election to receive retired pay under subsection (e).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="IDab316ea790da495fb11266f6a62f62d9"><enum>(2)</enum><header>Offset</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/7447">section 7447(j)</external-xref> is amended by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id210A69F8C8FC48A2AC1AEB5F36E4D5EF"><subparagraph id="ID2742aa81c95a45328730faa1bef7664d"><enum>(F)</enum><header>Offset</header><text>In the case of a judge who receives a distribution from the Thrift Savings Plan and who later receives retired pay under subsection (d), the retired pay shall be offset by an amount equal to the amount of the distribution which represents the Government’s contribution to the individual’s Thrift Savings Account during years of service as a full-time judicial officer under the Federal Employees Retirement System, without regard to earnings attributable to such amount. Where such an offset would exceed 50 percent of the retired pay to be received in the first year, the offset may be divided equally over the first 2 years in which the individual receives the annuity.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA715CF2479CA4A5A852A9F6644F244D3"><enum>(3)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to basic pay earned while serving as a judge of the United States Tax Court on or after the date of the enactment of this Act.</text></paragraph></subsection><subsection id="id98b8fc82e3fc48c2a86d8740c89c94be"><enum>(b)</enum><header>Change in vesting period for survivor annuities and waiver of vesting period in the event of assassination</header><paragraph id="id207F2C79DCEF4DAD8288A5D36FE67130"><enum>(1)</enum><header>Eligibility in case of death</header><text display-inline="yes-display-inline">Subsection (h) of <external-xref legal-doc="usc" parsable-cite="usc/26/7448">section 7448</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idEC3E18606B9B49CB87ED982ABA498626"><subsection id="id0A55CB294A914BF39B5255049057F1FE"><enum>(h)</enum><header>Entitlement to annuity</header><paragraph id="id5C55DA6B96DA4B47951BD371685BDF1B"><enum>(1)</enum><header>In general</header><subparagraph id="id7C7DCCEEE6A542BEA3351C48C7D38745"><enum>(A)</enum><header>Annuity to surviving spouse</header><text display-inline="yes-display-inline">If a judge or special trial judge described in paragraph (2) is survived by a surviving spouse but not by a dependent child, there shall be paid to such surviving spouse an annuity beginning with the day of the death of the judge or special trial judge or following the surviving spouse’s attainment of age 50, whichever is the later, in an amount computed as provided in subsection (m).</text></subparagraph><subparagraph id="id5F5B4D0A617946A392824327063BC7B4"><enum>(B)</enum><header>Annuity to surviving spouse and child</header><text display-inline="yes-display-inline">If a judge or special trial judge described in paragraph (2) is survived by a surviving spouse and dependent child or children, there shall be paid to such surviving spouse an annuity, beginning on the day of the death of the judge or special trial judge, in an amount computed as provided in subsection (m), and there shall also be paid to or on behalf of each such child an immediate annuity equal to the lesser of—</text><clause id="idF3C52276EF3B4F02924A969A4C95EE59"><enum>(i)</enum><text display-inline="yes-display-inline">10 percent of the average annual salary of such judge or special trial judge (determined in accordance with subsection (m)), or</text></clause><clause id="id9779BB7B5FFA483BA09928E9C152D3E1"><enum>(ii)</enum><text display-inline="yes-display-inline">20 percent of such average annual salary, divided by the number of such children.</text></clause></subparagraph><subparagraph id="id0D69628099364AA9BC3B0B35AF94F88C"><enum>(C)</enum><header>Annuity to surviving dependent children</header><text display-inline="yes-display-inline">If a judge or special trial judge described in paragraph (2) leaves no surviving spouse but leaves a surviving dependent child or children, there shall be paid to or on behalf of each such child an immediate annuity equal to the lesser of—</text><clause id="id2B0D40E9AE494067BFA06271ED56FE2C"><enum>(i)</enum><text display-inline="yes-display-inline">20 percent of the average annual salary of such judge or special trial judge (determined in accordance with subsection (m)), or</text></clause><clause id="idF60F76FD26DD4E4297AC8E4EC87F05AF"><enum>(ii)</enum><text display-inline="yes-display-inline">40 percent of such average annual salary divided by the number of such children.</text></clause></subparagraph></paragraph><paragraph id="id874CB37383D240578EA9169C18D256B9"><enum>(2)</enum><header>Covered judges</header><text display-inline="yes-display-inline">Paragraph (1) applies to any judge or special trial judge electing under subsection (b)—</text><subparagraph id="id7E828B10588040C28F499C7CDEC0D3E4"><enum>(A)</enum><text display-inline="yes-display-inline">who dies while a judge or special trial judge after having rendered at least 18 months of civilian service computed as prescribed in subsection (n), for the last 18 months of which the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made or the salary deductions required by the civil service retirement laws have actually been made, or</text></subparagraph><subparagraph id="idFA492ADAB1A9496BA40548BE126B5C6F"><enum>(B)</enum><text display-inline="yes-display-inline">who dies by assassination after having rendered less than 18 months of civilian service computed as prescribed in subsection (n) if, for the period of such service, the salary deductions provided for by subsection (c)(1) or the deposits required by subsection (d) have actually been made.</text></subparagraph></paragraph><paragraph id="id902319EE20E949D4B11667346351B213"><enum>(3)</enum><header>Termination of annuity</header><subparagraph id="id95D00198127D44B2BC4F657D92729AAF"><enum>(A)</enum><header>Surviving spouse</header><text display-inline="yes-display-inline">The annuity payable to a surviving spouse under this subsection shall be terminable upon such surviving spouse’s death or such surviving spouse’s remarriage before attaining age 55.</text></subparagraph><subparagraph id="id2DE1982F431E455CA4C53F5ACA3CB081"><enum>(B)</enum><header>Surviving child</header><text display-inline="yes-display-inline">Any annuity payable to a child under this subsection shall be terminable upon the earliest of—</text><clause id="idEA86E4AF06F041B3B15CAE3683E9E9B8"><enum>(i)</enum><text display-inline="yes-display-inline">the child's attainment of age 18,</text></clause><clause id="id8FDBF3A7F29D4162B876D7ADA00F5D84"><enum>(ii)</enum><text display-inline="yes-display-inline">the child’s marriage, or</text></clause><clause id="id737F9338197D421CAE1047695F91D6A3"><enum>(iii)</enum><text display-inline="yes-display-inline">the child’s death,</text></clause><continuation-text continuation-text-level="subparagraph">except that if such child is incapable of self-support by reason of mental or physical disability the child’s annuity shall be terminable only upon death, marriage, or recovery from such disability.</continuation-text></subparagraph><subparagraph id="idE02798D1F64D4E09BF51F4EBD00193DC"><enum>(C)</enum><header>Dependent child after death of surviving spouse</header><text>In case of the death of a surviving spouse of a judge or special trial judge leaving a dependent child or children of the judge or special trial judge surviving such spouse, the annuity of such child or children shall be recomputed and paid as provided in paragraph (1)(C).</text></subparagraph><subparagraph id="idD1A57FC53EC14B9AA1C844EB7597F88F"><enum>(D)</enum><header>Recomputation with respect to other dependent children</header><text>In any case in which the annuity of a dependent child is terminated under this subsection, the annuities of any remaining dependent child or children based upon the service of the same judge or special trial judge shall be recomputed and paid as though the child whose annuity was so terminated had not survived such judge.</text></subparagraph><subparagraph id="id3B98C36FEB044810BE892DDADBF8A233"><enum>(E)</enum><header>Special rule for assassinated judges</header><text>In the case of a survivor of a judge or special trial judge described in paragraph (2)(B), there shall be deducted from the annuities otherwise payable under this section an amount equal to the amount of salary deductions that would have been made if such deductions had been made for 18 months prior to the death of the judge or special trial judge.</text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id9F0BF7D9E6CC4252AF21A5ACBB6E53D9"><enum>(2)</enum><header>Definition of assassination</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448(a)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idC20F30A2B99E4AA2A36F2D35BDC4F3A2"><paragraph id="id81F1E93D9B654E179AB6618914ABF33D"><enum>(10)</enum><text>The terms <term>assassinated</term> and <term>assassination</term> mean the killing of a judge or special trial judge that is motivated by the performance by the judge or special trial judge of his or her official duties.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="id7D6198AA974040388F18FA5DFE0BE141"><enum>(3)</enum><header>Determination of assassination</header><text>Subsection (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/7448">section 7448</external-xref> is amended—</text><subparagraph id="idF19DD4A924314D45958EDBAB5AEA2E18"><enum>(A)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">of dependency and disability</header-in-text>.—Questions</quote> and inserting “<header-in-text level="subsection" style="OLC">by chief judge</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id790E2EE7270D4C07ABD04B02A022F7BD"><paragraph id="id94A4D4549EC04AE2A5F213C1BF3C2D91"><enum>(1)</enum><header>Dependency and disability</header><text>Questions</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph id="idC5925C1340AC4FB7AA9550EA485AA19E"><enum>(B)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id8AA96A86E3DB4F1284E979265D26BFF9"><paragraph id="idDCFA15BBFC824FC5A65763F281C55C80"><enum>(2)</enum><header>Assassination</header><text>The chief judge shall determine whether the killing of a judge or special trial judge was an assassination, subject to review only by the Tax Court. The head of any Federal agency that investigates the killing of a judge or special trial judge shall provide to the chief judge any information that would assist the chief judge in making such a determination.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="id06EFA3CBFE914C8289737273DE3E2CCB"><enum>(4)</enum><header>Computation of annuities</header><text>Subsection (m) of <external-xref legal-doc="usc" parsable-cite="usc/26/7448">section 7448</external-xref> is amended—</text><subparagraph id="id15B3A15083144D9E82421C00D54F1A6E"><enum>(A)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">annuities</header-in-text>.—The annuity</quote> and inserting “<header-in-text level="subsection" style="OLC">annuities</header-in-text>.—</text><quoted-block style="OLC" display-inline="no-display-inline" id="idA2646534FD0D4CFF92E8C68ACF0B6C22"><paragraph id="idE67CE68FFBEC4D6580AF4B251D2527FD"><enum>(1)</enum><header>In general</header><text>Except as provided in paragraph (2), the annuity</text></paragraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph id="id54480A4A3F114319B33CB46D645789E6"><enum>(B)</enum><text>by striking <quote>the sum of (1) 1.5 percent</quote> and inserting “the sum of—</text><quoted-block style="OLC" display-inline="no-display-inline" id="id22333A176BB8489FB6119BDC6D25969F"><subparagraph id="id388E1A90DA6B4495B2F296A90820905D"><enum>(A)</enum><text>1.5 percent</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph id="idf9b63e411f3c43eb92cb82e175e08ab8"><enum>(C)</enum><text>by striking <quote>and (2) three-fourths of 1 percent</quote> and inserting “and</text><quoted-block style="OLC" display-inline="no-display-inline" id="idACC820AC7778405686AFB584EC8F50C0"><subparagraph id="idA51C94A6417F437AB8AE898E043CCAC6"><enum>(B)</enum><text>three-fourths of 1 percent</text></subparagraph><after-quoted-block>,</after-quoted-block></quoted-block></subparagraph><subparagraph id="id092066d0bb26478daf03c6e58305fae6"><enum>(D)</enum><text>by striking <quote>prior allowable service, except that</quote> and inserting “prior allowable service,</text><quoted-block style="OLC" display-inline="no-display-inline" id="id446C9050AB56456FB8A776515DDFB8C7"><quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">except that</quoted-block-continuation-text><after-quoted-block>, and</after-quoted-block></quoted-block></subparagraph><subparagraph id="id481D9D5781F94DDDA0431E0848F512C0"><enum>(E)</enum><text>by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id435D066FE07B4B9F9AD0DE9DC1DA8F55"><paragraph id="id8166871414DF4E57B9AFBD80BC190949"><enum>(2)</enum><header>Service of less than 3 years</header><text>In the case of a judge or special trial judge who has served less than 3 years, the annuity of the surviving spouse of such judge or special trial judge shall be based upon the average annual salary received by such judge or special trial judge for judicial service prior to the death of the judge or special trial judge.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subparagraph></paragraph><paragraph id="idDC2BA4864D5046568080666914458824"><enum>(5)</enum><header>Other benefits</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id4F0DA7843F514F7B9E8162271F65AABF"><subsection id="idC5FF5B172D374A36B5A3792DE1FF594E"><enum>(u)</enum><header>Other benefits in case of assassination</header><text>In the case of a judge or special trial judge who is assassinated, an annuity shall be paid under this section notwithstanding a survivor’s eligibility for or receipt of benefits under <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/81">chapter 81</external-xref> of title 5, United States Code, except that the annuity for which a surviving spouse is eligible under this section shall be reduced to the extent that the total benefits paid under this section and <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/81">chapter 81</external-xref> of that title for any year would exceed the current salary for that year of the office of the judge or special trial judge.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="idFA7C0FDF41BD493FB36F7E8A550BEC91"><enum>(c)</enum><header>Coordination of retirement and survivor annuity with the Federal Employees Retirement System</header><paragraph id="idB1F7551E186C4D1BA2451C2E31A048DA"><enum>(1)</enum><header>Retirement</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7447">Section 7447</external-xref> is amended—</text><subparagraph id="id705D5C966BE6481D9EC022CE253689CC"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>section 8331(8)</quote> in subsection (g)(2)(C) and inserting <quote>sections 8331(8) and 8401(19)</quote>, and</text></subparagraph><subparagraph id="id4D46D08E28BE4ACFABA249A170047BD7"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>Civil Service Commission</quote> both places it appears in subsection (i)(2) and inserting <quote>Office of Personnel Management</quote>.</text></subparagraph></paragraph><paragraph id="idA24A474D10D64E32AD6D91642FCCA6E5"><enum>(2)</enum><header>Annuities to surviving spouses and dependent children</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448</external-xref> is amended—</text><subparagraph id="id751464BF3F9A4EADAD972218367AFBD7"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>section 8332</quote> in subsection (d) and inserting <quote>sections 8332 and 8411</quote>, and</text></subparagraph><subparagraph id="id60FB67F24FC0496A8F3BE42DFE010020"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>section 8332</quote> in subsection (n) and inserting <quote>sections 8332 and 8411</quote>.</text></subparagraph></paragraph></subsection><subsection id="IDc7595d55233949f19d1ce8937d35ac21"><enum>(d)</enum><header>Limit on teaching compensation of retired judges</header><paragraph id="ID026eea125d684fc780b9f02beae98951"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/7447">Section 7447</external-xref> is amended by adding at the end the following new subsection:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id419CC2F2224048E79A20F9D316BB0B79"><subsection id="IDcf6e65cd926b4cbbb350ab6da0f3fd4c"><enum>(k)</enum><header>Teaching compensation of retired judges</header><text>For purposes of the limitation under <external-xref legal-doc="usc-act" parsable-cite="usc-act/Ethics in Government Act of 1978 /501">section 501(a)</external-xref> of the Ethics in Government Act of 1978 (5 U.S.C. App.), any compensation for teaching approved under section 502(a)(5) of such Act shall not be treated as outside earned income when received by a judge of the United States Tax Court who has retired under subsection (b) for teaching performed during any calendar year for which such a judge has met the requirements of subsection (c), as certified by the chief judge.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDc147189588984b8ab8ed8d014420f022"><enum>(2)</enum><header>Effective date</header><text>The amendment made by this subsection shall apply to any individual serving as a retired judge of the United States Tax Court on or after the date of the enactment of this Act.</text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id1CB58883B8E642C382EE5AE4EB0EECF2"><enum>(e)</enum><header>Effective date</header><text>Except as otherwise provided, the amendments made by this section shall take effect on the date of the enactment of this Act.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="idEE431078F2DD42E39245AC5AAEFEAD5A"><enum>1002.</enum><header>Provisions relating to special trial judges of the Tax Court</header><subsection id="id6126fb4fa2ca4d22bca20443c8126a57"><enum>(a)</enum><header>Retirement and recall for special trial judges</header><text>Part I of subchapter C of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">chapter 76</external-xref> is amended by inserting after section 7447 the following new section:</text><quoted-block style="OLC" display-inline="no-display-inline" id="idCD31A6B04AC3412B89379CA152FDF7F9"><section id="idaf7ea019ab0348c0b554038817ed258e"><enum>7447A.</enum><header>Retirement for special trial judges</header><subsection id="id417fab68b6144176b6929a57e6d8efc5"><enum>(a)</enum><header>In general</header><paragraph id="id4B40684CBAB84CD7B3276791E0E0C7B9"><enum>(1)</enum><header>Retirement</header><text>Any special trial judge appointed pursuant to section 7443A may retire from service as a special trial judge if the individual meets the age and service requirements set forth in the following table:</text><table blank-lines-before="1" table-type="" table-template-name="Generic: 1 text, 1 num" align-to-level="section" frame="topbot" colsep="1" rowsep="0" line-rules="hor-ver" rule-weights="4.4.4.0.0.0"><tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="fig" colname="column1" min-data-value="36" rowsep="0" colwidth="200pts"></colspec><colspec coldef="txt" colname="column2" min-data-value="56" rowsep="0" colwidth="125pts"></colspec><thead><row><entry align="center" morerows="0" namest="column1" rowsep="1" colname="column1">If the special trial judge has attained age:</entry><entry align="center" morerows="0" namest="column2" rowsep="1" colname="column2">And the years of service as a special trial judge are at least:</entry></row></thead><tbody><row><entry align="left" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1" colname="column1">65</entry><entry align="right" rowsep="0" colname="column2">15</entry></row><row><entry align="left" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1" colname="column1">66</entry><entry align="right" rowsep="0" colname="column2">14</entry></row><row><entry align="left" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1" colname="column1">67</entry><entry align="right" rowsep="0" colname="column2">13</entry></row><row><entry align="left" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1" colname="column1">68</entry><entry align="right" rowsep="0" colname="column2">12</entry></row><row><entry align="left" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1" colname="column1">69</entry><entry align="right" rowsep="0" colname="column2">11</entry></row><row><entry align="left" rowsep="0" stub-definition="txt-ldr" stub-hierarchy="1" colname="column1">70</entry><entry align="right" rowsep="0" colname="column2">10.</entry></row></tbody></tgroup></table></paragraph><paragraph id="id73021BE99C06446EBDC29234C9FC86A1"><enum>(2)</enum><header>Length of service</header><text>In making any determination of length of service as a special trial judge there shall be included all periods (whether or not consecutive) during which an individual served as a special trial judge</text></paragraph></subsection><subsection id="id8CABA24A327C4AC89CAD644DE6851C96"><enum>(b)</enum><header>Retirement upon disability</header><text>Any special trial judge appointed pursuant to section 7443A who becomes permanently disabled from performing such individual's duties shall retire from service as a special trial judge.</text></subsection><subsection id="ID7ef81c1d1b664425a0796dab9f4bdec2"><enum>(c)</enum><header>Recalling of retired special trial judges</header><text>Any individual who has retired pursuant to subsection (a) may be called upon by the chief judge to perform such judicial duties with the Tax Court as may be requested of such individual for a period or periods specified by the chief judge, except that in the case of any such individual—</text><paragraph id="ID4737d5f17beb469bb3f3851d95ceacde"><enum>(1)</enum><text>the aggregate of such periods in any 1 calendar year shall not (without the consent of such individual) exceed 90 calendar days, and</text></paragraph><paragraph id="ID609797f924dc4ec7988f3e1b9460b985"><enum>(2)</enum><text>such individual shall be relieved of performing such duties during any period in which illness or disability precludes the performance of such duties.</text></paragraph><continuation-text continuation-text-level="subsection">Any act, or failure to act, by an individual performing judicial duties pursuant to this subsection shall have the same force and effect as if it were the act (or failure to act) of a special trial judge. Any individual who is performing judicial duties pursuant to this subsection shall be paid the same compensation (in lieu of retired pay) and allowances for travel and other expenses as a special trial judge.</continuation-text></subsection><subsection id="idB34F9C565993461690CE1E9743F64F8B"><enum>(d)</enum><header>Retired pay</header><paragraph id="id739158473616427995A4B8A59A3EF9D5"><enum>(1)</enum><header>In general</header><text>Any individual who retires pursuant to subsection (a) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period of retirement from service as a special trial judge at a rate which bears the same ratio to the rate of the salary payable to a special trial judge during such period as—</text><subparagraph id="id66935F8E6A384B1495789010E17BA1DC"><enum>(A)</enum><text>the number of years such individual has served as special trial judge bears to,</text></subparagraph><subparagraph id="id06CD01EB467A4CC9B7B8877D9E9B2408"><enum>(B)</enum><text>15,</text></subparagraph><continuation-text continuation-text-level="paragraph">except that the rate of such retired pay shall not be more than the rate of such salary for such period.</continuation-text></paragraph><paragraph id="id5880F0444F424B1D8A8598236FADF037"><enum>(2)</enum><header>Retirement upon disability</header><text>Any individual who retires pursuant to subsection (b) and elects under subsection (e) to receive retired pay under this subsection shall receive retired pay during any period of retirement from service as a special trial judge—</text><subparagraph id="idB50125D4C2704D52B8CA20932803B5D5"><enum>(A)</enum><text>at a rate equal to the rate of the salary payable to a special trial judge during such period, if the individual had at least 10 years of service as a special trial judge before retirement, and</text></subparagraph><subparagraph id="idB3B141C543584145A7F88528AC32AB39"><enum>(B)</enum><text>at a rate equal to ½ the rate described in subparagraph (A), if the individual had fewer than 10 years of service as a special trial judge before retirement.</text></subparagraph></paragraph><paragraph id="idF3BF9BE31E704A18B18AE7CAC8FAFB18"><enum>(3)</enum><header>Beginning date and payment</header><text>Retired pay under this subsection shall begin to accrue on the day following the date on which the individual’s salary as a special trial judge ceases to accrue, and shall continue to accrue during the remainder of such individual’s life. Retired pay under this subsection shall be paid in the same manner as the salary of a special trial judge. </text></paragraph><paragraph id="id0A55F37DF4F944C88195D21139065F9E"><enum>(4)</enum><header>Partial years</header><text>In computing the rate of the retired pay for an individual to whom paragraph (1) applies, any portion of the aggregate number of years such individual has served as a special trial judge which is a fractional part of 1 year shall be eliminated if it is less than 6 months, or shall be counted as a full year if it is 6 months or more. </text></paragraph><paragraph id="id8FF49E4F0FCB4637BA0FA06D5E4E9C54"><enum>(5)</enum><header>Recalled service</header><text>In computing the rate of the retired pay for an individual to whom paragraph (1) applies, any period during which such individual performs services under subsection (c) on a substantially full-time basis shall be treated as a period during which such individual has served as a special trial judge.</text></paragraph></subsection><subsection id="id5AE3EC34CA5F4FBF89FF8005C17CE390"><enum>(e)</enum><header>Election to receive retired pay</header><text>Any special trial judge may elect to receive retired pay under subsection (d). Such an election—</text><paragraph id="id41f94afca0f74ef29f5c2f474d0e4755"><enum>(1)</enum><text>may be made only while an individual is a special trial judge (except that in the case of an individual who fails to be reappointed as a special trial judge, such election may be made within 60 days after such individual leaves office as a special trial judge),</text></paragraph><paragraph id="id58f091b19f6547fdb30c82017ea5d5c7"><enum>(2)</enum><text>once made, shall be irrevocable, and</text></paragraph><paragraph id="id9ff5fd877cef4c6ab05f4148810d2c44"><enum>(3)</enum><text>shall be made by filing notice thereof in writing with the chief judge.</text></paragraph><continuation-text continuation-text-level="subsection">The chief judge shall transmit to the Office of Personnel Management a copy of each notice filed with the chief judge under this subsection.</continuation-text></subsection><subsection id="id576EE6EA58214F90A2DAFDB9B0C7D320"><enum>(f)</enum><header>Other rules made applicable</header><text>The rules of subsections (f), (g), (h), (i), and (j) of section 7447 shall apply to a special trial judge in the same manner as a judge of the Tax Court. For purposes of the preceding sentence, any reference to the President in such subsections shall be applied as if it were a reference to the chief judge.</text></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="idddf712a1a0c04f52ab2575d1d9687f61"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="id26749ee2ddab4f10a88bccfde2ced9cc"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/3121">Section 3121(b)(5)(E)</external-xref> is amended by inserting <quote>or special trial judge</quote> before <quote>of the United States Tax Court</quote>.</text></paragraph><paragraph id="id229952b3a4cd49e391edceb35c7dd865"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/7448">Section 7448(b)(2)</external-xref> is amended to read as follows:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id9160b5ccaca141bd8e7f0988304a5629"><paragraph id="idca9fd6f93dab4727b42325d0431153c7"><enum>(2)</enum><header>Special trial judges</header><text>Any special trial judge may by written election filed with the chief judge elect the application of this section. Such election shall be filed while such individual is a special trial judge.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="idad3e349066b145f88ff1f152538ad58b"><enum>(3)</enum><text>Section 210(a)(5)(E) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/410">42 U.S.C. 410(a)(5)(E)</external-xref>) is amended by inserting <quote>or special trial judge</quote> before <quote>of the United States Tax Court</quote>.</text></paragraph></subsection><subsection id="id236295f4c54f4c4488d7938f6eb78898"><enum>(c)</enum><header>Clerical amendment</header><text>The table of sections for part I of subchapter C of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/76">chapter 76</external-xref> is amended by inserting after the item relating to section 7447 the following new item:</text><quoted-block style="OLC" id="idaa574cfa-a2bb-4218-97f3-d63d1f1bb62a"><toc><toc-entry level="section" idref="idaf7ea019ab0348c0b554038817ed258e">Sec. 7447A. Retirement for special trial judges.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" id="idE4AC51EC1D6E47528220AF7FB4D0DB7E"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on the date of the enactment of this Act.</text></subsection></section><enum>XI</enum><header>Revenue provisions</header><section commented="no" id="H94E5260681DD4418B26A14322FAEFF3A"><enum>1101.</enum><header>Simple and SEP Roth IRAs</header><subsection commented="no" id="H98241CDB6BCD40788B1AD0D5DAA9F622"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/408A">Section 408A</external-xref> is amended by striking subsection (f).</text></subsection><subsection id="H6DC2E197CD9443C5ABDA6950B77FC405"><enum>(b)</enum><header>Rules relating to simplified employee pensions</header><paragraph id="H30A7A89D0F9843E3A984A7EE2AC9A111"><enum>(1)</enum><header>Contributions</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/402">Section 402(h)(1)</external-xref> is amended by striking <quote>and</quote> at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H560BB2F8BFA84D36B07945C6CC3A702D"><subparagraph id="HAFB31EBBA6564A269E3AD0DE49D426EB"><enum>(C)</enum><text display-inline="yes-display-inline">in the case of any contributions pursuant to a simplified employer pension which are made to an individual retirement plan designated as a Roth IRA, such contribution shall not be excludable from gross income.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H1875D0212829412BB04A0A85D2DD759E"><enum>(2)</enum><header>Distributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/402">Section 402(h)(3)</external-xref> is amended by inserting <quote>, or section 408A(d) in the case of an individual retirement plan designated as a Roth IRA</quote> before the period at the end.</text></paragraph><paragraph id="H704A3EACBB8649569B2CCE809F4EC7C6"><enum>(3)</enum><header>Election required</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/408">Section 408(k)</external-xref> is amended by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (10), respectively, and by inserting after paragraph (6) the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H5E62A2C9208947F5B23C5648CA9058D1"><paragraph id="H3B23D122C12844DBA54877F6F720854D"><enum>(7)</enum><header>Roth contribution election</header><text display-inline="yes-display-inline">An individual retirement plan which is designated as a Roth IRA shall not be treated as a simplified employee pension under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection id="H0DFFA4A868E14F12879D03AAA1A70ABA"><enum>(c)</enum><header>Rules relating to simple retirement accounts</header><paragraph id="H5D9DAD35C0E5420DADA2E3E6F7731511"><enum>(1)</enum><header>Election required</header><text>Section 408(p), as amended by this Act, is further amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HDE0EE07EA36B4EE3BC5855CF674342FB"><paragraph id="HDD04C1D9A0D1419996CC93C5E3C862F7"><enum>(13)</enum><header>Roth contribution election</header><text display-inline="yes-display-inline">An individual retirement plan which is designated as a Roth IRA shall not be treated as a simple retirement account under this subsection unless the employee elects for such plan to be so treated (at such time and in such manner as the Secretary may provide).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H7F39AABDF74D4057BA46BE765CC8E6C2"><enum>(2)</enum><header>Rollovers</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/408A">Section 408A(e)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H660E9910A5414856AF3E24F68FCEE9F7"><paragraph id="HA064E0B7593D4426839F9E7C9FA527AF"><enum>(3)</enum><header>Simple retirement accounts</header><text display-inline="yes-display-inline">In the case of any payment or distribution out of a simple retirement account (as defined in section 408(p)) with respect to which an election has been made under section 408(p)(13) and to which 72(t)(6)(A) applies, the term <quote>qualified rollover contribution</quote> shall not include any payment or distribution paid into an account other than another simple retirement account (as so defined).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection><subsection commented="no" id="HD33A288DB02E4366898E45DC796AA884"><enum>(d)</enum><header>Coordination with Roth contribution limitation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/408A">Section 408A(c)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HFE5D07C9058E477086026524A9DD4FF6"><paragraph commented="no" id="H35726423D5A84FF8B348AF308C8E5F78"><enum>(7)</enum><header>Coordination with limitation for simple retirement plans and SEPs</header><text display-inline="yes-display-inline">In the case of an individual on whose behalf contributions are made to a simple retirement account or a simplified employee pension, the amount described in paragraph (2)(A) shall be increased by an amount equal to the contributions made on the individual’s behalf to such account or pension for the taxable year, but only to the extent such contributions—</text><subparagraph commented="no" id="H066628876E824A2DB73EC24F1E892B09"><enum>(A)</enum><text>in the case of a simplified retirement account—</text><clause id="H8CBD0A6916E94806B2773DE6841CF9A0"><enum>(i)</enum><text>do not exceed the sum of the dollar amount in effect for the taxable year under section 408(p)(2)(A)(ii) and the employer contribution required under subparagraph (A)(iii) or (B)(i), as the case may be, of section 408(p)(2), and</text></clause><clause id="H78B18A217C1D423BA69DDC87962FA9C7"><enum>(ii)</enum><text display-inline="yes-display-inline">do not cause the elective deferrals (as defined in section 402(g)(3)) on behalf of such individual to exceed the limitation under section 402(g)(1) (taking into account any additional elective deferrals permitted under section 414(v)), or</text></clause></subparagraph><subparagraph commented="no" id="HE47882CC16604DA2864F8CDEB5D1C79A"><enum>(B)</enum><text>in the case of a simplified employee pension, do not exceed the limitation in effect under section 408(j).</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H848BBE9895D5408286FCCD8832B272B9"><enum>(e)</enum><header>Conforming amendment</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/408A">Section 408A(d)(2)(B)</external-xref> is amended by inserting <quote>, or employer in the case of a simple retirement account (as defined in section 408(p)) or simplified employee pension (as defined in section 408(k)),</quote> after <quote>individual’s spouse</quote>.</text></subsection><subsection commented="no" id="H4E742C8805C54723A162A0258F7A9894"><enum>(f)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023.</text></subsection></section><section id="HDEAB3BA7D42246EF90D205BB683453F8"><enum>1102.</enum><header>Elective deferrals generally limited to regular contribution limit</header><subsection id="HFB12FCE0F9C74EFF9B7A4841FAD00489"><enum>(a)</enum><header>Applicable employer plans</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/414">Section 414(v)</external-xref> is amended by adding at the end the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="id95E12F72DC124E279C2DD643A8B06FAC"><paragraph id="idBA6B866B7FDA4934B67A9BAD8958EE05"><enum>(7)</enum><header>Certain deferrals must be Roth contributions</header><subparagraph id="id3F36B30F1FFD45E69F51B122496F82E2"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Except as provided in subparagraph (C), in the case of an eligible participant whose wages (as defined in section 3121(a)) for the preceding year exceed $100,000, paragraph (1) shall apply only if any additional elective deferrals are designated Roth contributions (as defined in section 402A(c)(1)).</text></subparagraph><subparagraph id="idE83E8CFFA3704C9EBE5D56750E154A61"><enum>(B)</enum><header>Roth option</header><text>In the case of an applicable employer plan with respect to which subparagraph (A) applies to any participant for a plan year, paragraph (1) shall not apply to the plan unless the plan provides that any eligible participant may make the participant's additional elective deferrals as designated Roth contributions.</text></subparagraph><subparagraph id="id2EA56ABDFA96452CB02367AAD6ACF2B3"><enum>(C)</enum><header>Exception</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply in the case of an applicable employer plan described in paragraph (6)(A)(iv).</text></subparagraph><subparagraph id="id939e6f5d52ba424e80e16919ccd84b0f"><enum>(D)</enum><header>Election to change deferrals</header><text>The Secretary may provide by regulations that an eligible participant may elect to change the participant's election to make additional elective deferrals if the participant's compensation is determined to exceed the limitation under subparagraph (A) after the election is made.</text></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id48B2068319494737AD5E19768B03056A"><enum>(8)</enum><header>No recharacterization of excess deferrals</header><text>If the elective deferrals for any year of an eligible participant to which paragraph (7)(A) applies exceed any applicable limitation under this title (without regard to paragraph (1)) or the terms of the plan, such excess shall not be treated as additional elective deferrals to which paragraph (1) applies.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="HC3300B9D70034745AD7060D36AF3DA3F"><enum>(b)</enum><header>Conforming amendments</header><paragraph id="H7D34E1D1598F44DAB5EC0F392D933969"><enum>(1)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/402">Section 402(g)(1)</external-xref> is amended by striking subparagraph (C).</text></paragraph><paragraph id="HA73211E031BE4D33AE15E78106319196"><enum>(2)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/26/457">Section 457(e)(18)(A)(ii)</external-xref> is amended by inserting <quote>the lesser of any designated Roth contributions made by the participant to the plan or</quote> before <quote>the applicable dollar amount</quote>. </text></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3D0D18E703A44E5D9040CCE3D993CEE9"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2023.</text></subsection></section><section id="H2080CE16A1A64754AE8B455D894ABCFF"><enum>1103.</enum><header>Optional treatment of employer matching or nonelective contributions as Roth contributions</header><subsection id="HE776073F9DA9452BB86B64AB8D0C2D2B"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/402A">Section 402A(a)</external-xref> is amended by redesignating paragraph (2) as paragraph (4), by striking <quote>and</quote> at the end of paragraph (1), and by inserting after paragraph (1) the following new paragraphs:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H496C362BC8C446B0990744D03386C5C7"><paragraph id="HDBC3DA2C45754DC594E2555011F4C751"><enum>(2)</enum><text display-inline="yes-display-inline">any designated Roth contribution which is made by the employer to the program on the employee’s behalf on account of the employee’s contribution, elective deferral, or (subject to the requirements of section 401(m)(14)) qualified student loan payment shall be treated as a matching contribution for purposes of this chapter, except that such contribution shall not be excludable from gross income,</text></paragraph><paragraph id="id44D0EEBE2C16444F8C4D617D7152C068"><enum>(3)</enum><text>any designated Roth contribution which is made by the employer to the program on the employee’s behalf and which is a nonelective contribution shall be fully vested and shall not be excludable from gross income, and</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H227353EA31684084BDC45BE0650D9DCF"><enum>(b)</enum><header>Matching included in qualified Roth contribution program</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/402A">Section 402A(b)(1)</external-xref> is amended—</text><paragraph id="H801E1D3205B74F399E19883AA7841D28"><enum>(1)</enum><text>by inserting <quote>, or to have made on the employee’s behalf,</quote> after <quote>elect to make</quote>, and</text></paragraph><paragraph id="H2AE096A6FA394153BA12139062D8A6DA"><enum>(2)</enum><text>by inserting <quote>, or of matching contributions or nonelective contributions which may otherwise be made on the employee’s behalf,</quote> after <quote>otherwise eligible to make</quote>. </text></paragraph></subsection><subsection id="HC2E446BE6BC244129263C274B9D09635"><enum>(c)</enum><header>Designated Roth matching contributions</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/402A">Section 402A(c)(1)</external-xref> is amended by inserting <quote>, matching contribution, or nonelective contribution</quote> after <quote>elective deferral</quote>. </text></subsection><subsection id="HDE4A33D6A01B4F3699E96C0F2C14E156"><enum>(d)</enum><header>Matching contribution defined</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/402A">Section 402A(e)</external-xref> is amended by adding at the end the following:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H7282CCE7403F4EF9B9E2A9F4DF0A8445"><paragraph id="HFDFD93B6384048C99627D04AD86089CE"><enum>(3)</enum><header>Matching contribution</header><text display-inline="yes-display-inline">The term <quote>matching contribution</quote> means—</text><subparagraph id="H62DB9091A3704B059F5F1C162DD41575"><enum>(A)</enum><text>any matching contribution described in section 401(m)(4)(A), and</text></subparagraph><subparagraph id="H3ACC6725C26046DD8C820523845326E6"><enum>(B)</enum><text display-inline="yes-display-inline">any contribution to an eligible deferred compensation plan (as defined in section 457(b)) by an eligible employer described in section 457(e)(1)(A) on behalf of an employee and on account of such employee’s elective deferral under such plan,</text></subparagraph><continuation-text continuation-text-level="paragraph">but only if such contribution is fully vested at the time received.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection commented="no" display-inline="no-display-inline" id="H6A0AD62E2DC3444BBCC42CF9033ED733"><enum>(e)</enum><header>Effective date</header><text>The amendments made by this section shall apply to contributions made after December 31, 2022.</text></subsection></section><section commented="no" display-inline="no-display-inline" id="id8FE3EDA3FE954F9E8CA52EDE5ACE33C9"><enum>1104.</enum><header>Charitable conservation easements</header><subsection id="HDD1BC3B55F834794B1D84EC7A5B87FED"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/26/170">Section 170(h)</external-xref> is amended by adding at the end the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="HD849B356A2AC452DA2BAEDBF7AB0B2AB"><paragraph id="H10C9D3A9045444219BDB4FAA456151A6"><enum>(7)</enum><header>Limitation on deduction for qualified conservation contributions made by pass-through entities</header><subparagraph id="H95FB9A7F0458451BA4F2FB6EE831A9A7"><enum>(A)</enum><header>In general</header><text>A contribution by a partnership (whether directly or as a distributive share of a contribution of another partnership) shall not be treated as a qualified conservation contribution for purposes of this section if the amount of such contribution exceeds 2.5 times the sum of each partner’s relevant basis in such partnership.</text></subparagraph><subparagraph id="HB10965AD42C145639D4D27091734F15C"><enum>(B)</enum><header>Relevant basis</header><text display-inline="yes-display-inline">For purposes of this paragraph—</text><clause id="HD1BA11AA1FDB4FB4A65C5F73B8F6306B"><enum>(i)</enum><header>In general</header><text>The term <term>relevant basis</term> means, with respect to any partner, the portion of such partner’s modified basis in the partnership which is allocable (under rules similar to the rules of section 755) to the portion of the real property with respect to which the contribution described in subparagraph (A) is made.</text></clause><clause id="H4BDDD9F050F94C5FBCA245EFDCD9931D"><enum>(ii)</enum><header>Modified basis</header><text>The term <term>modified basis</term> means, with respect to any partner, such partner’s adjusted basis in the partnership as determined—</text><subclause id="H18AB22DA2E274E73A55CA45A9484C60C"><enum>(I)</enum><text>immediately before the contribution described in subparagraph (A),</text></subclause><subclause id="H50616114E1464FA0AEEE56E8D51D6513"><enum>(II)</enum><text>without regard to section 752, and</text></subclause><subclause id="HF728583E200E481EA65D7F91C443605C"><enum>(III)</enum><text>by the partnership after taking into account the adjustments described in subclauses (I) and (II) and such other adjustments as the Secretary may provide.</text></subclause></clause></subparagraph><subparagraph id="H99C363D7A4A049479EED35D8DF8F061E"><enum>(C)</enum><header>Exception for contributions outside 3-year holding period</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply to any contribution which is made at least 3 years after the latest of—</text><clause id="H847D4A0F09B943D3836B6F1090D7E977"><enum>(i)</enum><text>the last date on which the partnership that made such contribution acquired any portion of the real property with respect to which such contribution is made, </text></clause><clause id="HC91784D09CC34CBB95FF67B90CACE281"><enum>(ii)</enum><text>the last date on which any partner in the partnership that made such contribution acquired any interest in such partnership, and </text></clause><clause id="HC8023EC9E5C7490795AABA0495F22413"><enum>(iii)</enum><text>if the interest in the partnership that made such contribution is held through 1 or more partnerships—</text><subclause id="H04B2F078F1CA4A918B803132E1D9B6C9"><enum>(I)</enum><text>the last date on which any such partnership acquired any interest in any other such partnership, and</text></subclause><subclause id="HE0EC4A429C514D7E91A169159EF0C301"><enum>(II)</enum><text>the last date on which any partner in any such partnership acquired any interest in such partnership.</text></subclause></clause></subparagraph><subparagraph id="id6427eea49f014ad6bc7339580e901df0"><enum>(D)</enum><header>Exception for family partnerships</header><clause id="id563ae296b0b445d5a8cadb058c232886"><enum>(i)</enum><header>In general</header><text>Subparagraph (A) shall not apply with respect to any contribution made by any partnership if substantially all of the partnership interests in such partnership are held, directly or indirectly, by an individual and members of the family of such individual.</text></clause><clause id="id95015898223b4a61b8c63e7f55a876b5"><enum>(ii)</enum><header>Members of the family</header><text>For purposes of this subparagraph, the term <term>members of the family</term> means, with respect to any individual—</text><subclause id="id85cbb302e78f49faafd5379ee75b77f4"><enum>(I)</enum><text>the spouse of such individual, and</text></subclause><subclause id="id01287653ea384875bb15bf394616a8cc"><enum>(II)</enum><text>any individual who bears a relationship to such individual which is described in subparagraphs (A) through (G) of section 152(d)(2).</text></subclause></clause></subparagraph><subparagraph id="HC89371FB498245C2BAA1FA25BC04F31B"><enum>(E)</enum><header>Application to other pass-through entities</header><text display-inline="yes-display-inline">Except as may be otherwise provided by the Secretary, the rules of this paragraph shall apply to S corporations and other pass-through entities in the same manner as such rules apply to partnerships.</text></subparagraph><subparagraph id="H85A5054922EE4371B8F181BD6631C57D"><enum>(F)</enum><header>Regulations</header><text>The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this paragraph, including regulations or other guidance—</text><clause id="HA8D0132451B840AB8E6B956FE435A7AC"><enum>(i)</enum><text>to require reporting, including reporting related to tiered partnerships and the modified basis of partners, and</text></clause><clause id="HF6150D9219614AB5B8EC4F7D9CEFE0F2"><enum>(ii)</enum><text>to prevent the avoidance of the purposes of this paragraph.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection><subsection id="H5D5D071E05B8484C8EA3F56644DFE835"><enum>(b)</enum><header>Application of accuracy-related penalties</header><paragraph id="H60826E1194AB4F6684C55D4747683811"><enum>(1)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6662">Section 6662(b)</external-xref> is amended by inserting after paragraph (9) the following new paragraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H40A8F69C7734400A830A391722F0C32D"><paragraph id="H68875CF0660442EAACAEB81A57D006EC"><enum>(10)</enum><text display-inline="yes-display-inline">Any disallowance of a deduction by reason of section 170(h)(7).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H3A0F5B6F015241758CA966A1A2CE39F1"><enum>(2)</enum><header>Treatment as gross valuation misstatement</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6662">Section 6662(h)(2)</external-xref> is amended by striking <quote>and</quote> at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting <quote>, and</quote>, and by adding at the end the following new subparagraph:</text><quoted-block style="OLC" display-inline="no-display-inline" id="H2E5BBD2514084D20A26807EE650FE75E"><subparagraph id="H12E0C4B371174CC4A687C2085A84DFC2"><enum>(D)</enum><text display-inline="yes-display-inline">any disallowance of a deduction described in subsection (b)(10).</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph><paragraph id="H59D037D58C0D42F38DBAE11E1193483B"><enum>(3)</enum><header>No reasonable cause exception</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6664">Section 6664(c)(2)</external-xref> is amended by inserting <quote>or to any disallowance of a deduction described in section 6662(b)(10)</quote> before the period at the end. </text></paragraph><paragraph id="H5E3E1766901E4CC49E7C4B2756852B37"><enum>(4)</enum><header>Approval of assessment not required</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/6751">Section 6751(b)(2)(A)</external-xref> is amended by striking <quote>subsection (b)(9)</quote> and inserting <quote>paragraph (9) or (10) of subsection (b)</quote>.</text></paragraph></subsection><subsection id="H6F61B727C3494ECC969752D3C41AF293"><enum>(c)</enum><header>Extension of statute of limitations for listed transactions</header><text display-inline="yes-display-inline">Any contribution described in <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170(h)(7)(A)</external-xref> of the Internal Revenue Code of 1986 (as added by this section) shall be treated for purposes of sections 6501(c)(10) and 6235(c)(6) of such Code as a transaction specifically identified by the Secretary as a tax avoidance transaction for purposes of section 6011 of such Code.</text></subsection><subsection id="H04F890EF61404F46A92CADE0F2E6A4DE"><enum>(d)</enum><header>Effective date</header><paragraph id="H51375FBB71F7412B91D9E2A31C18C334"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The amendments made by this section shall apply to contributions made after the date of the enactment of this Act.</text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H530955E850484979ADC81A9BA1B862C8"><enum>(2)</enum><header>No inference</header><text display-inline="yes-display-inline">No inference is intended as to the appropriate treatment of contributions made in taxable years ending on or before the date specified in paragraph (1), or as to any activity not described in <external-xref legal-doc="usc" parsable-cite="usc/26/170">section 170(h)(7)</external-xref> of the Internal Revenue Code of 1986, as added by this section.</text></paragraph></subsection></section>September 8, 2022Read twice and placed on the calendar