117 S5125 IS: Family Attribution Modernization Act U.S. Senate 2022-11-17 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.

II117th CONGRESS2d SessionS. 5125IN THE SENATE OF THE UNITED STATESNovember 17, 2022Mr. Kelly (for himself and Mr. Cassidy) introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to reform the application of family attribution rules for purposes of retirement plans.

1.

Short title

This Act may be cited as the Family Attribution Modernization Act.

2.

Reform of family attribution rule

(a)

In general

Section 414 of the Internal Revenue Code of 1986 is amended—(1)in subsection (b)—(A)by striking For purposes of and inserting the following: (1)

In general

For purposes of, and(B)by adding at the end the following new paragraphs: (2)

Special rules for applying family attribution

For purposes of applying the attribution rules under section 1563 with respect to paragraph (1), the following rules apply:(A)Community property laws shall be disregarded for purposes of determining ownership.(B)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 1563(e)(6)(A).(C)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.(3)

Plan shall not fail to be treated as satisfying this section

If application of paragraph (2) causes two or more entities to be a controlled group, or an affiliated service group, or to no longer be in a controlled group or an affiliated service group, such change shall be treated as a transaction to which section 410(b)(6)(C) applies., and(2)in subsection (m)(6)(B), by striking apply and inserting apply, except that community property laws shall be disregarded for purposes of determining ownership.(b)

Effective date

The amendments made by this section shall apply to plan years beginning on or after the date of the enactment of this section.