[Congressional Record Volume 164, Number 160 (Thursday, September 27, 2018)]
[House]
[Pages H9118-H9134]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       FAMILY SAVINGS ACT OF 2018

  Mr. KELLY of Pennsylvania. Mr. Speaker, pursuant to House Resolution 
1084, I call up the bill (H.R. 6757) to amend the Internal Revenue Code 
of 1986 to encourage retirement and family savings, and for other 
purposes, and ask for its immediate consideration.
  The Clerk read the title of the bill.
  The SPEAKER pro tempore. Pursuant to House Resolution 1084, the 
amendment in the nature of a substitute recommended by the Committee on 
Ways and Means, printed in the bill, modified by the amendment printed 
in part B of House Report 115-985, is adopted, and the bill, as 
amended, is considered read.
  The text of the bill, as amended, is as follows:

                               H.R. 6757

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

     SECTION 1. SHORT TITLE; ETC.

       (a) Short Title.--This Act may be cited as the ``Family 
     Savings Act of 2018''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; etc.

          TITLE I--EXPANDING AND PRESERVING RETIREMENT SAVINGS

Sec. 101. Multiple employer plans; pooled employer plans.
Sec. 102. Rules relating to election of safe harbor 401(k) status.
Sec. 103. Certain taxable non-tuition fellowship and stipend payments 
              treated as compensation for IRA purposes.
Sec. 104. Repeal of maximum age for traditional IRA contributions.
Sec. 105. Qualified employer plans prohibited from making loans through 
              credit cards and other similar arrangements.
Sec. 106. Portability of lifetime income investments.
Sec. 107. Treatment of custodial accounts on termination of section 
              403(b) plans.
Sec. 108. Clarification of retirement income account rules relating to 
              church-controlled organizations.
Sec. 109. Exemption from required minimum distribution rules for 
              individuals with certain account balances.
Sec. 110. Clarification of treatment of certain retirement plan 
              contributions picked up by governmental employers for new 
              or existing employees.
Sec. 111. Elective deferrals by members of the Ready Reserve of a 
              reserve component of the Armed Forces.

                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

Sec. 201. Plan adopted by filing due date for year may be treated as in 
              effect as of close of year.
Sec. 202. Modification of nondiscrimination rules to protect older, 
              longer service participants.
Sec. 203. Study of appropriate PBGC premiums.

                  TITLE III--OTHER SAVINGS PROVISIONS

Sec. 301. Universal Savings Accounts.
Sec. 302. Expansion of section 529 plans.
Sec. 303. Penalty-free withdrawals from retirement plans for 
              individuals in case of birth of child or adoption.

          TITLE I--EXPANDING AND PRESERVING RETIREMENT SAVINGS

     SEC. 101. MULTIPLE EMPLOYER PLANS; POOLED EMPLOYER PLANS.

       (a) Qualification Requirements.--
       (1) In general.--Section 413 of the Internal Revenue Code 
     of 1986 is amended by adding at the end the following new 
     subsection:
       ``(e) Application of Qualification Requirements for Certain 
     Multiple Employer Plans With Pooled Plan Providers.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     a defined contribution plan to which subsection (c) applies--
       ``(A) is maintained by employers which have a common 
     interest other than having adopted the plan, or
       ``(B) in the case of a plan not described in subparagraph 
     (A), has a pooled plan provider,

     then the plan shall not be treated as failing to meet the 
     requirements under this title applicable to a plan described 
     in section 401(a) or to a plan that consists of individual 
     retirement accounts described in section 408 (including by 
     reason of subsection (c) thereof), whichever is applicable, 
     merely because one or more employers of employees covered by 
     the plan fail to take such actions as are required of such 
     employers for the plan to meet such requirements.
       ``(2) Limitations.--
       ``(A) In general.--Paragraph (1) shall not apply to any 
     plan unless the terms of the plan provide that in the case of 
     any employer in the plan failing to take the actions 
     described in paragraph (1)--
       ``(i) the assets of the plan attributable to employees of 
     such employer (or beneficiaries of such employees) will be 
     transferred to a plan maintained only by such employer (or 
     its successor), to an eligible retirement plan as defined in 
     section 402(c)(8)(B) for each individual whose account is 
     transferred, or to any other arrangement that the Secretary 
     determines is appropriate, unless the Secretary determines it 
     is in the best interests of the employees of such employer 
     (and the beneficiaries of such employees) to retain the 
     assets in the plan, and
       ``(ii) such employer (and not the plan with respect to 
     which the failure occurred or any other employer in such 
     plan) shall, except to the extent provided by the Secretary, 
     be liable for any liabilities with respect to such plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).
       ``(B) Failures by pooled plan providers.--If the pooled 
     plan provider of a plan described in paragraph (1)(B) does 
     not perform substantially all of the administrative duties 
     which are required of the provider under paragraph (3)(A)(i) 
     for any plan year, the Secretary may provide that the 
     determination as to whether the plan meets the requirements 
     under this title applicable to a plan described in section 
     401(a) or to a plan that consists of individual retirement 
     accounts described in section 408 (including by reason of 
     subsection (c) thereof), whichever is applicable, shall be 
     made in the same manner as would be made without regard to 
     paragraph (1).
       ``(3) Pooled plan provider.--
       ``(A) In general.--For purposes of this subsection, the 
     term `pooled plan provider' means, with respect to any plan, 
     a person who--
       ``(i) is designated by the terms of the plan as a named 
     fiduciary (within the meaning of section 402(a)(2) of the 
     Employee Retirement Income Security Act of 1974), as the plan 
     administrator, and as the person responsible to perform all 
     administrative duties (including conducting proper testing 
     with respect to the plan and the employees of each employer 
     in the plan) which are reasonably necessary to ensure that--

       ``(I) the plan meets any requirement applicable under the 
     Employee Retirement Income Security Act of 1974 or this title 
     to a plan described in section 401(a) or to a plan that 
     consists of individual retirement accounts described in 
     section 408 (including by reason of subsection (c) thereof), 
     whichever is applicable, and
       ``(II) each employer in the plan takes such actions as the 
     Secretary or such person determines are necessary for the 
     plan to meet the requirements described in subclause (I), 
     including providing to such person any disclosures or other 
     information which the Secretary may require or which such 
     person otherwise determines are necessary to administer the 
     plan or to allow the plan to meet such requirements,

       ``(ii) registers as a pooled plan provider with the 
     Secretary, and provides such other information to the 
     Secretary as the Secretary may require, before beginning 
     operations as a pooled plan provider,
       ``(iii) acknowledges in writing that such person is a named 
     fiduciary (within the meaning of section 402(a)(2) of the 
     Employee Retirement Income Security Act of 1974), and the 
     plan administrator, with respect to the plan, and
       ``(iv) is responsible for ensuring that all persons who 
     handle assets of, or who are fiduciaries of, the plan are 
     bonded in accordance with section 412 of the Employee 
     Retirement Income Security Act of 1974.
       ``(B) Audits, examinations and investigations.--The 
     Secretary may perform audits, examinations, and 
     investigations of pooled plan providers as may be necessary 
     to enforce and carry out the purposes of this subsection.
       ``(C) Aggregation rules.--For purposes of this paragraph, 
     in determining whether a person meets the requirements of 
     this paragraph to be a pooled plan provider with respect to 
     any plan, all persons who perform services for the plan and 
     who are treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 shall be treated as one 
     person.
       ``(D) Treatment of employers as plan sponsors.--Except with 
     respect to the administrative duties of the pooled plan 
     provider described in subparagraph (A)(i), each employer in a 
     plan which has a pooled plan provider shall be treated as the 
     plan sponsor with respect to the portion of the plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).
       ``(4) Guidance.--The Secretary shall issue such guidance as 
     the Secretary determines appropriate to carry out this 
     subsection, including guidance--
       ``(A) to identify the administrative duties and other 
     actions required to be performed by a pooled plan provider 
     under this subsection,
       ``(B) which describes the procedures to be taken to 
     terminate a plan which fails to meet the requirements to be a 
     plan described in paragraph (1), including the proper 
     treatment of, and actions needed to be taken by, any employer 
     in the plan and the assets and liabilities of the plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees), and
       ``(C) identifying appropriate cases to which the rules of 
     paragraph (2)(A) will apply to employers in the plan failing 
     to take the actions described in paragraph (1).

     The Secretary shall take into account under subparagraph (C) 
     whether the failure of an employer or pooled plan provider to 
     provide any disclosures or other information, or to take any 
     other action, necessary to administer a plan or to allow a 
     plan to meet requirements applicable to the plan under 
     section 401(a) or 408, whichever is applicable, has continued 
     over a period

[[Page H9119]]

     of time that demonstrates a lack of commitment to compliance.
       ``(5) Model plan.--The Secretary shall publish model plan 
     language which meets the requirements of this subsection and 
     of paragraphs (43) and (44) of section 3 of the Employee 
     Retirement Income Security Act of 1974 and which may be 
     adopted in order for a plan to be treated as a plan described 
     in paragraph (1)(B).''.
       (2) Conforming amendment.--Section 413(c)(2) of such Code 
     is amended by striking ``section 401(a)'' and inserting 
     ``sections 401(a) and 408(c)''.
       (3) Technical amendment.--Section 408(c) of such Code is 
     amended by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) There is a separate accounting for any interest of an 
     employee or member (or spouse of an employee or member) in a 
     Roth IRA.''.
       (b) No Common Interest Required for Pooled Employer 
     Plans.--Section 3(2) of the Employee Retirement Income 
     Security Act of 1974 (29 U.S.C. 1002(2)) is amended by adding 
     at the end the following:
       ``(C) A pooled employer plan shall be treated as--
       ``(i) a single employee pension benefit plan or single 
     pension plan; and
       ``(ii) a plan to which section 210(a) applies.''.
       (c) Pooled Employer Plan and Provider Defined.--
       (1) In general.--Section 3 of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1002) is amended by 
     adding at the end the following:
       ``(43) Pooled employer plan.--
       ``(A) In general.--The term `pooled employer plan' means a 
     plan--
       ``(i) which is an individual account plan established or 
     maintained for the purpose of providing benefits to the 
     employees of 2 or more employers;
       ``(ii) which is a plan described in section 401(a) of the 
     Internal Revenue Code of 1986 which includes a trust exempt 
     from tax under section 501(a) of such Code or a plan that 
     consists of individual retirement accounts described in 
     section 408 of such Code (including by reason of subsection 
     (c) thereof); and
       ``(iii) the terms of which meet the requirements of 
     subparagraph (B).

     Such term shall not include a plan maintained by employers 
     which have a common interest other than having adopted the 
     plan.
       ``(B) Requirements for plan terms.--The requirements of 
     this subparagraph are met with respect to any plan if the 
     terms of the plan--
       ``(i) designate a pooled plan provider and provide that the 
     pooled plan provider is a named fiduciary of the plan;
       ``(ii) designate one or more trustees meeting the 
     requirements of section 408(a)(2) of the Internal Revenue 
     Code of 1986 (other than an employer in the plan) to be 
     responsible for collecting contributions to, and holding the 
     assets of, the plan and require such trustees to implement 
     written contribution collection procedures that are 
     reasonable, diligent, and systematic;
       ``(iii) provide that each employer in the plan retains 
     fiduciary responsibility for--

       ``(I) the selection and monitoring in accordance with 
     section 404(a) of the person designated as the pooled plan 
     provider and any other person who, in addition to the pooled 
     plan provider, is designated as a named fiduciary of the 
     plan; and
       ``(II) to the extent not otherwise delegated to another 
     fiduciary by the pooled plan provider and subject to the 
     provisions of section 404(c), the investment and management 
     of the portion of the plan's assets attributable to the 
     employees of the employer (or beneficiaries of such 
     employees);

       ``(iv) provide that employers in the plan, and participants 
     and beneficiaries, are not subject to unreasonable 
     restrictions, fees, or penalties with regard to ceasing 
     participation, receipt of distributions, or otherwise 
     transferring assets of the plan in accordance with section 
     208 or paragraph (44)(C)(i)(II);
       ``(v) require--

       ``(I) the pooled plan provider to provide to employers in 
     the plan any disclosures or other information which the 
     Secretary may require, including any disclosures or other 
     information to facilitate the selection or any monitoring of 
     the pooled plan provider by employers in the plan; and
       ``(II) each employer in the plan to take such actions as 
     the Secretary or the pooled plan provider determines are 
     necessary to administer the plan or for the plan to meet any 
     requirement applicable under this Act or the Internal Revenue 
     Code of 1986 to a plan described in section 401(a) of such 
     Code or to a plan that consists of individual retirement 
     accounts described in section 408 of such Code (including by 
     reason of subsection (c) thereof), whichever is applicable, 
     including providing any disclosures or other information 
     which the Secretary may require or which the pooled plan 
     provider otherwise determines are necessary to administer the 
     plan or to allow the plan to meet such requirements; and

       ``(vi) provide that any disclosure or other information 
     required to be provided under clause (v) may be provided in 
     electronic form and will be designed to ensure only 
     reasonable costs are imposed on pooled plan providers and 
     employers in the plan.
       ``(C) Exceptions.--The term `pooled employer plan' does not 
     include--
       ``(i) a multiemployer plan; or
       ``(ii) a plan established before the date of the enactment 
     of the Family Savings Act of 2018 unless the plan 
     administrator elects that the plan will be treated as a 
     pooled employer plan and the plan meets the requirements of 
     this title applicable to a pooled employer plan established 
     on or after such date.
       ``(D) Treatment of employers as plan sponsors.--Except with 
     respect to the administrative duties of the pooled plan 
     provider described in paragraph (44)(A)(i), each employer in 
     a pooled employer plan shall be treated as the plan sponsor 
     with respect to the portion of the plan attributable to 
     employees of such employer (or beneficiaries of such 
     employees).
       ``(44) Pooled plan provider.--
       ``(A) In general.--The term `pooled plan provider' means a 
     person who--
       ``(i) is designated by the terms of a pooled employer plan 
     as a named fiduciary, as the plan administrator, and as the 
     person responsible for the performance of all administrative 
     duties (including conducting proper testing with respect to 
     the plan and the employees of each employer in the plan) 
     which are reasonably necessary to ensure that--

       ``(I) the plan meets any requirement applicable under this 
     Act or the Internal Revenue Code of 1986 to a plan described 
     in section 401(a) of such Code or to a plan that consists of 
     individual retirement accounts described in section 408 of 
     such Code (including by reason of subsection (c) thereof), 
     whichever is applicable; and
       ``(II) each employer in the plan takes such actions as the 
     Secretary or pooled plan provider determines are necessary 
     for the plan to meet the requirements described in subclause 
     (I), including providing the disclosures and information 
     described in paragraph (43)(B)(v)(II);

       ``(ii) registers as a pooled plan provider with the 
     Secretary, and provides to the Secretary such other 
     information as the Secretary may require, before beginning 
     operations as a pooled plan provider;
       ``(iii) acknowledges in writing that such person is a named 
     fiduciary, and the plan administrator, with respect to the 
     pooled employer plan; and
       ``(iv) is responsible for ensuring that all persons who 
     handle assets of, or who are fiduciaries of, the pooled 
     employer plan are bonded in accordance with section 412.
       ``(B) Audits, examinations and investigations.--The 
     Secretary may perform audits, examinations, and 
     investigations of pooled plan providers as may be necessary 
     to enforce and carry out the purposes of this paragraph and 
     paragraph (43).
       ``(C) Guidance.--The Secretary shall issue such guidance as 
     the Secretary determines appropriate to carry out this 
     paragraph and paragraph (43), including guidance--
       ``(i) to identify the administrative duties and other 
     actions required to be performed by a pooled plan provider 
     under either such paragraph; and
       ``(ii) which requires in appropriate cases that if an 
     employer in the plan fails to take the actions required under 
     subparagraph (A)(i)(II)--

       ``(I) the assets of the plan attributable to employees of 
     such employer (or beneficiaries of such employees) are 
     transferred to a plan maintained only by such employer (or 
     its successor), to an eligible retirement plan as defined in 
     section 402(c)(8)(B) of the Internal Revenue Code of 1986 for 
     each individual whose account is transferred, or to any other 
     arrangement that the Secretary determines is appropriate in 
     such guidance; and
       ``(II) such employer (and not the plan with respect to 
     which the failure occurred or any other employer in such 
     plan) shall, except to the extent provided in such guidance, 
     be liable for any liabilities with respect to such plan 
     attributable to employees of such employer (or beneficiaries 
     of such employees).

     The Secretary shall take into account under clause (ii) 
     whether the failure of an employer or pooled plan provider to 
     provide any disclosures or other information, or to take any 
     other action, necessary to administer a plan or to allow a 
     plan to meet requirements described in subparagraph 
     (A)(i)(II) has continued over a period of time that 
     demonstrates a lack of commitment to compliance. The 
     Secretary may waive the requirements of subclause (ii)(I) in 
     appropriate circumstances if the Secretary determines it is 
     in the best interests of the employees of the employer 
     referred to in such clause (and the beneficiaries of such 
     employees) to retain the assets in the plan with respect to 
     which the employer's failure occurred.
       ``(D) Aggregation rules.--For purposes of this paragraph, 
     in determining whether a person meets the requirements of 
     this paragraph to be a pooled plan provider with respect to 
     any plan, all persons who perform services for the plan and 
     who are treated as a single employer under subsection (b), 
     (c), (m), or (o) of section 414 of the Internal Revenue Code 
     of 1986 shall be treated as one person.''.
       (2) Bonding requirements for pooled employer plans.--The 
     last sentence of section 412(a) of the Employee Retirement 
     Income Security Act of 1974 (29 U.S.C. 1112(a)) is amended by 
     inserting ``or in the case of a pooled employer plan (as 
     defined in section 3(43))'' after ``section 407(d)(1))''.
       (3) Conforming and technical amendments.--Section 3 of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1002) is amended--
       (A) in paragraph (16)(B)--
       (i) by striking ``or'' at the end of clause (ii); and
       (ii) by striking the period at the end and inserting ``, or 
     (iv) in the case of a pooled employer plan, the pooled plan 
     provider.''; and
       (B) by striking the second paragraph (41).
       (d) Pooled Employer and Multiple Employer Plan Reporting.--
       (1) Additional information.--Section 103 of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1023) is 
     amended--
       (A) in subsection (a)(1)(B), by striking ``applicable 
     subsections (d), (e), and (f)'' and inserting ``applicable 
     subsections (d), (e), (f), and (g)''; and
       (B) by amending subsection (g) to read as follows:

[[Page H9120]]

       ``(g) Additional Information With Respect to Pooled 
     Employer and Multiple Employer Plans.--An annual report under 
     this section for a plan year shall include--
       ``(1) with respect to any plan to which section 210(a) 
     applies (including a pooled employer plan), a list of 
     employers in the plan, a good faith estimate of the 
     percentage of total contributions made by such employers 
     during the plan year, and the aggregate account balances 
     attributable to each employer in the plan (determined as the 
     sum of the account balances of the employees of such employer 
     (and the beneficiaries of such employees)); and
       ``(2) with respect to a pooled employer plan, the 
     identifying information for the person designated under the 
     terms of the plan as the pooled plan provider.''.
       (2) Simplified annual reports.--Section 104(a) of the 
     Employee Retirement Income Security Act of 1974 (29 U.S.C. 
     1024(a)) is amended by striking paragraph (2)(A) and 
     inserting the following:
       ``(2)(A) With respect to annual reports required to be 
     filed with the Secretary under this part, the Secretary may 
     by regulation prescribe simplified annual reports for any 
     pension plan that--
       ``(i) covers fewer than 100 participants; or
       ``(ii) is a plan described in section 210(a) that covers 
     fewer than 1,000 participants, but only if no single employer 
     in the plan has 100 or more participants covered by the 
     plan.''.
       (e) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     apply to plan years beginning after December 31, 2019.
       (2) Rule of construction.--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 amendments) 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 a 
     multiple employer plan.

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

       (a) Limitation of Annual Safe Harbor Notice to Matching 
     Contribution Plans.--
       (1) In general.--Section 401(k)(12)(A) of the Internal 
     Revenue Code of 1986 is amended by striking ``if such 
     arrangement'' and all that follows and inserting ``if such 
     arrangement--
       ``(i) meets the contribution requirements of subparagraph 
     (B) and the notice requirements of subparagraph (D), or
       ``(ii) meets the contribution requirements of subparagraph 
     (C).''.
       (2) Automatic contribution arrangements.--Section 
     401(k)(13)(B) of such Code is amended by striking ``means'' 
     and all that follows and inserting ``means a cash or deferred 
     arrangement--
       ``(i) which is described in subparagraph (D)(i)(I) and 
     meets the applicable requirements of subparagraphs (C) 
     through (E), or
       ``(ii) which is described in subparagraph (D)(i)(II) and 
     meets the applicable requirements of subparagraphs (C) and 
     (D).''.
       (b) Nonelective Contributions.--Section 401(k)(12) of such 
     Code is amended by redesignating subparagraph (F) as 
     subparagraph (G), and by inserting after subparagraph (E) the 
     following new subparagraph:
       ``(F) Timing of plan amendment for employer making 
     nonelective contributions.--
       ``(i) In general.--Except as provided in clause (ii), a 
     plan may be amended after the beginning of a plan year to 
     provide that the requirements of subparagraph (C) shall apply 
     to the arrangement for the plan year, but only if the 
     amendment is adopted--

       ``(I) at any time before the 30th day before the close of 
     the plan year, or
       ``(II) at any time before the last day under paragraph 
     (8)(A) for distributing excess contributions for the plan 
     year.

       ``(ii) Exception where plan provided for matching 
     contributions.--Clause (i) shall not apply to any plan year 
     if the plan provided at any time during the plan year that 
     the requirements of subparagraph (B) or paragraph 
     (13)(D)(i)(I) applied to the plan year.
       ``(iii) 4-percent contribution requirement.--Clause (i)(II) 
     shall not apply to an arrangement unless the amount of the 
     contributions described in subparagraph (C) which the 
     employer is required to make under the arrangement for the 
     plan year with respect to any employee is an amount equal to 
     at least 4 percent of the employee's compensation.''.
       (c) Automatic Contribution Arrangements.--Section 
     401(k)(13) of such Code is amended by adding at the end the 
     following:
       ``(F) Timing of plan amendment for employer making 
     nonelective contributions.--
       ``(i) In general.--Except as provided in clause (ii), a 
     plan may be amended after the beginning of a plan year to 
     provide that the requirements of subparagraph (D)(i)(II) 
     shall apply to the arrangement for the plan year, but only if 
     the amendment is adopted--

       ``(I) at any time before the 30th day before the close of 
     the plan year, or
       ``(II) at any time before the last day under paragraph 
     (8)(A) for distributing excess contributions for the plan 
     year.

       ``(ii) Exception where plan provided for matching 
     contributions.--Clause (i) shall not apply to any plan year 
     if the plan provided at any time during the plan year that 
     the requirements of subparagraph (D)(i)(I) or paragraph 
     (12)(B) applied to the plan year.
       ``(iii) 4-percent contribution requirement.--Clause (i)(II) 
     shall not apply to an arrangement unless the amount of the 
     contributions described in subparagraph (D)(i)(II) which the 
     employer is required to make under the arrangement for the 
     plan year with respect to any employee is an amount equal to 
     at least 4 percent of the employee's compensation.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2018.

     SEC. 103. CERTAIN TAXABLE NON-TUITION FELLOWSHIP AND STIPEND 
                   PAYMENTS TREATED AS COMPENSATION FOR IRA 
                   PURPOSES.

       (a) In General.--Section 219(f)(1) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following: 
     ``The term `compensation' shall include any amount included 
     in gross income and paid to an individual to aid the 
     individual in the pursuit of graduate or postdoctoral 
     study.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 104. REPEAL OF MAXIMUM AGE FOR TRADITIONAL IRA 
                   CONTRIBUTIONS.

       (a) In General.--Section 219(d) of the Internal Revenue 
     Code of 1986 is amended by striking paragraph (1).
       (b) Conforming Amendment.--Section 408A(c) of the Internal 
     Revenue Code of 1986 is amended by striking paragraph (4) and 
     by redesignating paragraphs (5), (6), and (7) as paragraphs 
     (4), (5), and (6), respectively.
       (c) Effective Date.--The amendments made by this section 
     shall apply to contributions made for taxable years beginning 
     after December 31, 2018.

     SEC. 105. QUALIFIED EMPLOYER PLANS PROHIBITED FROM MAKING 
                   LOANS THROUGH CREDIT CARDS AND OTHER SIMILAR 
                   ARRANGEMENTS.

       (a) In General.--Section 72(p)(2) of the Internal Revenue 
     Code of 1986 is amended by redesignating subparagraph (D) as 
     subparagraph (E) and by inserting after subparagraph (C) the 
     following new subparagraph:
       ``(D) Prohibition of loans through credit cards and other 
     similar arrangements.--Notwithstanding subparagraph (A), 
     paragraph (1) shall apply to any loan which is made through 
     the use of any credit card or any other similar 
     arrangement.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to loans made after the date of the enactment of 
     this Act.

     SEC. 106. PORTABILITY OF LIFETIME INCOME INVESTMENTS.

       (a) In General.--Section 401(a) of the Internal Revenue 
     Code of 1986 is amended by inserting after paragraph (37) the 
     following new paragraph:
       ``(38) Portability of lifetime income investments.--
       ``(A) In general.--Except as may be otherwise provided by 
     regulations, a trust forming part of a defined contribution 
     plan shall not be treated as failing to constitute a 
     qualified trust under this section solely by reason of 
     allowing--
       ``(i) qualified distributions of a lifetime income 
     investment, or
       ``(ii) distributions of a lifetime income investment in the 
     form of a qualified plan distribution annuity contract,

     on or after the date that is 90 days prior to the date on 
     which such lifetime income investment is no longer authorized 
     to be held as an investment option under the plan.
       ``(B) Definitions.--For purposes of this subsection--
       ``(i) the term `qualified distribution' means a direct 
     trustee-to-trustee transfer described in paragraph (31)(A) to 
     an eligible retirement plan (as defined in section 
     402(c)(8)(B)),
       ``(ii) the term `lifetime income investment' means an 
     investment option which is designed to provide an employee 
     with election rights--

       ``(I) which are not uniformly available with respect to 
     other investment options under the plan, and
       ``(II) which are to a lifetime income feature available 
     through a contract or other arrangement offered under the 
     plan (or under another eligible retirement plan (as so 
     defined), if paid by means of a direct trustee-to-trustee 
     transfer described in paragraph (31)(A) to such other 
     eligible retirement plan),

       ``(iii) the term `lifetime income feature' means--

       ``(I) a feature which guarantees a minimum level of income 
     annually (or more frequently) for at least the remainder of 
     the life of the employee or the joint lives of the employee 
     and the employee's designated beneficiary, or
       ``(II) an annuity payable on behalf of the employee under 
     which payments are made in substantially equal periodic 
     payments (not less frequently than annually) over the life of 
     the employee or the joint lives of the employee and the 
     employee's designated beneficiary, and

       ``(iv) the term `qualified plan distribution annuity 
     contract' means an annuity contract purchased for a 
     participant and distributed to the participant by a plan or 
     contract described in subparagraph (B) of section 402(c)(8) 
     (without regard to clauses (i) and (ii) thereof).''.
       (b) Cash or Deferred Arrangement.--
       (1) In general.--Section 401(k)(2)(B)(i) of such Code is 
     amended by striking ``or'' at the end of subclause (IV), by 
     striking ``and'' at the end of subclause (V) and inserting 
     ``or'', and by adding at the end the following new subclause:

       ``(VI) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in subsection (a)(38)(B)(ii)), the 
     date that is 90 days prior to the date that such lifetime 
     income investment may no longer be held as an investment 
     option under the arrangement, and''.

       (2) Distribution requirement.--Section 401(k)(2)(B) of such 
     Code, as amended by paragraph (1), is amended by striking 
     ``and'' at the end of clause (i), by striking the semicolon 
     at the end of clause (ii) and inserting ``, and'', and by 
     adding at the end the following new clause:
       ``(iii) except as may be otherwise provided by regulations, 
     in the case of amounts described in clause (i)(VI), will be 
     distributed only in the

[[Page H9121]]

     form of a qualified distribution (as defined in subsection 
     (a)(38)(B)(i)) or a qualified plan distribution annuity 
     contract (as defined in subsection (a)(38)(B)(iv)),''.
       (c) Section 403(b) Plans.--
       (1) Annuity contracts.--Section 403(b)(11) of such Code is 
     amended by striking ``or'' at the end of subparagraph (B), by 
     striking the period at the end of subparagraph (C) and 
     inserting ``, or'', and by inserting after subparagraph (C) 
     the following new subparagraph:
       ``(D) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in section 401(a)(38)(B)(ii))--
       ``(i) on or after the date that is 90 days prior to the 
     date that such lifetime income investment may no longer be 
     held as an investment option under the contract, and
       ``(ii) in the form of a qualified distribution (as defined 
     in section 401(a)(38)(B)(i)) or a qualified plan distribution 
     annuity contract (as defined in section 
     401(a)(38)(B)(iv)).''.
       (2) Custodial accounts.--Section 403(b)(7)(A) of such Code 
     is amended by striking ``if--'' and all that follows and 
     inserting ``if the amounts are to be invested in regulated 
     investment company stock to be held in that custodial 
     account, and under the custodial account--
       ``(i) no such amounts may be paid or made available to any 
     distributee (unless such amount is a distribution to which 
     section 72(t)(2)(G) applies) before--

       ``(I) the employee dies,
       ``(II) the employee attains age 59\1/2\,
       ``(III) the employee has a severance from employment,
       ``(IV) the employee becomes disabled (within the meaning of 
     section 72(m)(7)),
       ``(V) in the case of contributions made pursuant to a 
     salary reduction agreement (within the meaning of section 
     3121(a)(5)(D)), the employee encounters financial hardship, 
     or
       ``(VI) except as may be otherwise provided by regulations, 
     with respect to amounts invested in a lifetime income 
     investment (as defined in section 401(a)(38)(B)(ii)), the 
     date that is 90 days prior to the date that such lifetime 
     income investment may no longer be held as an investment 
     option under the contract, and

       ``(ii) in the case of amounts described in clause (i)(VI), 
     such amounts will be distributed only in the form of a 
     qualified distribution (as defined in section 
     401(a)(38)(B)(i)) or a qualified plan distribution annuity 
     contract (as defined in section 401(a)(38)(B)(iv)).''.
       (d) Eligible Deferred Compensation Plans.--
       (1) In general.--Section 457(d)(1)(A) of such Code is 
     amended by striking ``or'' at the end of clause (ii), by 
     inserting ``or'' at the end of clause (iii), and by adding 
     after clause (iii) the following:
       ``(iv) except as may be otherwise provided by regulations, 
     in the case of a plan maintained by an employer described in 
     subsection (e)(1)(A), with respect to amounts invested in a 
     lifetime income investment (as defined in section 
     401(a)(38)(B)(ii)), the date that is 90 days prior to the 
     date that such lifetime income investment may no longer be 
     held as an investment option under the plan,''.
       (2) Distribution requirement.--Section 457(d)(1) of such 
     Code is amended by striking ``and'' at the end of 
     subparagraph (B), by striking the period at the end of 
     subparagraph (C) and inserting ``, and'', and by inserting 
     after subparagraph (C) the following new subparagraph:
       ``(D) except as may be otherwise provided by regulations, 
     in the case of amounts described in subparagraph (A)(iv), 
     such amounts will be distributed only in the form of a 
     qualified distribution (as defined in section 
     401(a)(38)(B)(i)) or a qualified plan distribution annuity 
     contract (as defined in section 401(a)(38)(B)(iv)).''.
       (e) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2018.

     SEC. 107. TREATMENT OF CUSTODIAL ACCOUNTS ON TERMINATION OF 
                   SECTION 403(B) PLANS.

       (a) In General.--Section 403(b)(7) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following:
       ``(D) Treatment of custodial account upon plan 
     termination.--
       ``(i) In general.--If--

       ``(I) an employer terminates the plan under which amounts 
     are contributed to a custodial account under subparagraph 
     (A), and
       ``(II) the person holding the assets of the account has 
     demonstrated to the satisfaction of the Secretary under 
     section 408(a)(2) that the person is qualified to be a 
     trustee of an individual retirement plan,

     then, as of the date of the termination, the custodial 
     account shall be deemed to be an individual retirement plan 
     for purposes of this title.
       ``(ii) Treatment as roth ira.--Any custodial account 
     treated as an individual retirement plan under clause (i) 
     shall be treated as a Roth IRA only if the custodial account 
     was a designated Roth account.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to plan terminations occurring after December 31, 
     2018.

     SEC. 108. CLARIFICATION OF RETIREMENT INCOME ACCOUNT RULES 
                   RELATING TO CHURCH-CONTROLLED ORGANIZATIONS.

       (a) In General.--Section 403(b)(9)(B) of the Internal 
     Revenue Code of 1986 is amended by inserting ``(including an 
     employee described in section 414(e)(3)(B))'' after 
     ``employee described in paragraph (1)''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to plan years beginning after December 31, 2008.

     SEC. 109. EXEMPTION FROM REQUIRED MINIMUM DISTRIBUTION RULES 
                   FOR INDIVIDUALS WITH CERTAIN ACCOUNT BALANCES.

       (a) In General.--Section 401(a)(9) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(H) Exception from required minimum distributions during 
     life of employee where assets do not exceed $50,000.--
       ``(i) In general.--If on the last day of any calendar year 
     the aggregate value of an employee's entire interest under 
     all applicable eligible retirement plans does not exceed 
     $50,000, then the requirements of subparagraph (A) with 
     respect to any distribution relating to such year shall not 
     apply with respect to such employee.
       ``(ii) Applicable eligible retirement plan.--For purposes 
     of this subparagraph, the term `applicable eligible 
     retirement plan' means an eligible retirement plan (as 
     defined in section 402(c)(8)(B)) other than a defined benefit 
     plan.
       ``(iii) Limit on required minimum distribution.--The 
     required minimum distribution determined under subparagraph 
     (A) for an employee under all applicable eligible retirement 
     plans shall not exceed an amount equal to the excess of--

       ``(I) the aggregate value of an employee's entire interest 
     under such plans on the last day of the calendar year to 
     which such distribution relates, over
       ``(II) the dollar amount in effect under clause (i) for 
     such calendar year.

     The Secretary in regulations or other guidance may provide 
     how such amount shall be distributed in the case of an 
     individual with more than one applicable eligible retirement 
     plan.
       ``(iv) Inflation adjustment.--In the case of any calendar 
     year beginning after 2019, the $50,000 amount in clause (i) 
     shall be increased by an amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost of living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2018' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     Any increase determined under this clause shall be rounded to 
     the next lowest multiple of $5,000.
       ``(v) Plan administrator reliance on employee 
     certification.--An applicable eligible retirement plan 
     described in clause (iii), (iv), (v), or (vi) of section 
     402(c)(8)(B) shall not be treated as failing to meet the 
     requirements of this paragraph in the case of any failure to 
     make a required minimum distribution for a calendar year if--

       ``(I) the aggregate value of an employee's entire interest 
     under all applicable eligible retirement plans of the 
     employer on the last day of the calendar year to which such 
     distribution relates does not exceed the dollar amount in 
     effect for such year under clause (i), and
       ``(II) the employee certifies that the aggregate value of 
     the employee's entire interest under all applicable eligible 
     retirement plans on the last day of the calendar year to 
     which such distribution relates did not exceed the dollar 
     amount in effect for such year under clause (i).

       ``(vi) Aggregation rule.--All employers treated as a single 
     employer under subsection (b), (c), (m), or (o) of section 
     414 shall be treated as a single employer for purposes of 
     clause (v).''.
       (b) Plan Administrator Reporting.--Section 6047 of such 
     Code is amended by redesignating subsection (h) as subsection 
     (i) and by inserting after subsection (g) the following new 
     subsection:
       ``(h) Account Balance for Participants Who Have Attained 
     Age 69.--
       ``(1) In general.--Not later than January 31 of each year, 
     the plan administrator (as defined in section 414(g)) of each 
     applicable eligible retirement plan (as defined in section 
     401(a)(9)(H)) shall make a return to the Secretary with 
     respect to each participant of such plan who has attained age 
     69 as of the end of the preceding calendar year which 
     states--
       ``(A) the name and plan number of the plan,
       ``(B) the name and address of the plan administrator,
       ``(C) the name, address, and taxpayer identification number 
     of the participant, and
       ``(D) the account balance of such participant as of the end 
     of the preceding calendar year.
       ``(2) Statement furnished to participant.--Every person 
     required to make a return under paragraph (1) with respect to 
     a participant shall furnish a copy of such return to such 
     participant.
       ``(3) Application to individual retirement plans and 
     annuities.--In the case of an applicable eligible retirement 
     plan described in clause (i) or (ii) of section 
     402(c)(8)(B)--
       ``(A) any reference in this subsection to the plan 
     administrator shall be treated as a reference to the trustee 
     or issuer, as the case may be, and
       ``(B) any reference in this subsection to the participant 
     shall be treated as a reference to the individual for whom 
     such account or annuity is maintained.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions required to be made in calendar 
     years beginning more than 120 days after the date of the 
     enactment of this Act.

     SEC. 110. CLARIFICATION OF TREATMENT OF CERTAIN RETIREMENT 
                   PLAN CONTRIBUTIONS PICKED UP BY GOVERNMENTAL 
                   EMPLOYERS FOR NEW OR EXISTING EMPLOYEES.

       (a) In General.--Section 414(h)(2) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``For purposes of paragraph (1)'' and 
     inserting the following:
       ``(A) In general.--For purposes of paragraph (1)'', and
       (2) by adding at the end the following new subparagraph:
       ``(B) Treatment of elections between alternative benefit 
     formulas.--For purposes of subparagraph (A), a contribution 
     shall not fail to be treated as picked up by an employing 
     unit merely because the employee may make an irrevocable 
     election between the application of two

[[Page H9122]]

     alternative benefit formulas involving the same or different 
     levels of employee contributions.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to plan years beginning after the date of the 
     enactment of this Act.

     SEC. 111. ELECTIVE DEFERRALS BY MEMBERS OF THE READY RESERVE 
                   OF A RESERVE COMPONENT OF THE ARMED FORCES.

       (a) In General.--Section 402(g) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new paragraph:
       ``(9) Elective deferrals by members of ready reserve.--
       ``(A) In general.--In the case of a qualified ready 
     reservist for any taxable year, the limitations of 
     subparagraphs (A) and (C) of paragraph (1) shall be applied 
     separately with respect to--
       ``(i) elective deferrals of such qualified ready reservist 
     with respect to compensation described in subparagraph (B), 
     and
       ``(ii) all other elective deferrals of such qualified ready 
     reservist.
       ``(B) Qualified ready reservist.--For purposes of this 
     paragraph, the term `qualified ready reservist' means any 
     individual for any taxable year if such individual received 
     compensation for service as a member of the Ready Reserve of 
     a reserve component (as defined in section 101 of title 37, 
     United States Code) during such taxable year.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to plan years beginning after December 31, 2018.

                 TITLE II--ADMINISTRATIVE IMPROVEMENTS

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

       (a) In General.--Section 401(b) of the Internal Revenue 
     Code of 1986 is amended--
       (1) by striking ``Retroactive Changes in Plan.--A stock 
     bonus'' and inserting ``Plan Amendments.--
       ``(1) Certain retroactive changes in plan.--A stock 
     bonus'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Adoption of plan.--If an employer adopts a stock 
     bonus, pension, profit-sharing, or annuity plan after the 
     close of a taxable year but before the time prescribed by law 
     for filing the employer's return of tax for the taxable year 
     (including extensions thereof), the employer may elect to 
     treat the plan as having been adopted as of the last day of 
     the taxable year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to plans adopted for taxable years beginning 
     after December 31, 2018.

     SEC. 202. MODIFICATION OF NONDISCRIMINATION RULES TO PROTECT 
                   OLDER, LONGER SERVICE PARTICIPANTS.

       (a) In General.--Section 401 of the Internal Revenue Code 
     of 1986 is amended--
       (1) by redesignating subsection (o) as subsection (p), and
       (2) by inserting after subsection (n) the following new 
     subsection:
       ``(o) Special Rules for Applying Nondiscrimination Rules to 
     Protect Older, Longer Service and Grandfathered 
     Participants.--
       ``(1) Testing of defined benefit plans with closed classes 
     of participants.--
       ``(A) Benefits, rights, or features provided to closed 
     classes.--A defined benefit plan which provides benefits, 
     rights, or features to a closed class of participants shall 
     not fail to satisfy the requirements of subsection (a)(4) by 
     reason of the composition of such closed class or the 
     benefits, rights, or features provided to such closed class, 
     if--
       ``(i) for the plan year as of which the class closes and 
     the 2 succeeding plan years, such benefits, rights, and 
     features satisfy the requirements of subsection (a)(4) 
     (without regard to this subparagraph but taking into account 
     the rules of subparagraph (I)),
       ``(ii) after the date as of which the class was closed, any 
     plan amendment which modifies the closed class or the 
     benefits, rights, and features provided to such closed class 
     does not discriminate significantly in favor of highly 
     compensated employees, and
       ``(iii) the class was closed before April 5, 2017, or the 
     plan is described in subparagraph (C).
       ``(B) Aggregate testing with defined contribution plans 
     permitted on a benefits basis.--
       ``(i) In general.--For purposes of determining compliance 
     with subsection (a)(4) and section 410(b), a defined benefit 
     plan described in clause (iii) may be aggregated and tested 
     on a benefits basis with 1 or more defined contribution 
     plans, including with the portion of 1 or more defined 
     contribution plans which--

       ``(I) provides matching contributions (as defined in 
     subsection (m)(4)(A)),
       ``(II) provides annuity contracts described in section 
     403(b) which are purchased with matching contributions or 
     nonelective contributions, or
       ``(III) consists of an employee stock ownership plan 
     (within the meaning of section 4975(e)(7)) or a tax credit 
     employee stock ownership plan (within the meaning of section 
     409(a)).

       ``(ii) Special rules for matching contributions.--For 
     purposes of clause (i), if a defined benefit plan is 
     aggregated with a portion of a defined contribution plan 
     providing matching contributions--

       ``(I) such defined benefit plan must also be aggregated 
     with any portion of such defined contribution plan which 
     provides elective deferrals described in subparagraph (A) or 
     (C) of section 402(g)(3), and
       ``(II) such matching contributions shall be treated in the 
     same manner as nonelective contributions, including for 
     purposes of applying the rules of subsection (l).

       ``(iii) Plans described.--A defined benefit plan is 
     described in this clause if--

       ``(I) the plan provides benefits to a closed class of 
     participants,
       ``(II) for the plan year as of which the class closes and 
     the 2 succeeding plan years, the plan satisfies the 
     requirements of section 410(b) and subsection (a)(4) (without 
     regard to this subparagraph but taking into account the rules 
     of subparagraph (I)),
       ``(III) after the date as of which the class was closed, 
     any plan amendment which modifies the closed class or the 
     benefits provided to such closed class does not discriminate 
     significantly in favor of highly compensated employees, and
       ``(IV) the class was closed before April 5, 2017, or the 
     plan is described in subparagraph (C).

       ``(C) Plans described.--A plan is described in this 
     subparagraph if, taking into account any predecessor plan--
       ``(i) such plan has been in effect for at least 5 years as 
     of the date the class is closed, and
       ``(ii) during the 5-year period preceding the date the 
     class is closed, there has not been a substantial increase in 
     the coverage or value of the benefits, rights, or features 
     described in subparagraph (A) or in the coverage or benefits 
     under the plan described in subparagraph (B)(iii) (whichever 
     is applicable).
       ``(D) Determination of substantial increase for benefits, 
     rights, and features.--In applying subparagraph (C)(ii) for 
     purposes of subparagraph (A)(iii), a plan shall be treated as 
     having had a substantial increase in coverage or value of the 
     benefits, rights, or features described in subparagraph (A) 
     during the applicable 5-year period only if, during such 
     period--
       ``(i) the number of participants covered by such benefits, 
     rights, or features on the date such period ends is more than 
     50 percent greater than the number of such participants on 
     the first day of the plan year in which such period began, or
       ``(ii) such benefits, rights, and features have been 
     modified by 1 or more plan amendments in such a way that, as 
     of the date the class is closed, the value of such benefits, 
     rights, and features to the closed class as a whole is 
     substantially greater than the value as of the first day of 
     such 5-year period, solely as a result of such amendments.
       ``(E) Determination of substantial increase for aggregate 
     testing on benefits basis.--In applying subparagraph (C)(ii) 
     for purposes of subparagraph (B)(iii)(IV), a plan shall be 
     treated as having had a substantial increase in coverage or 
     benefits during the applicable 5-year period only if, during 
     such period--
       ``(i) the number of participants benefitting under the plan 
     on the date such period ends is more than 50 percent greater 
     than the number of such participants on the first day of the 
     plan year in which such period began, or
       ``(ii) the average benefit provided to such participants on 
     the date such period ends is more than 50 percent greater 
     than the average benefit provided on the first day of the 
     plan year in which such period began.
       ``(F) Certain employees disregarded.--For purposes of 
     subparagraphs (D) and (E), any increase in coverage or value 
     or in coverage or benefits, whichever is applicable, which is 
     attributable to such coverage and value or coverage and 
     benefits provided to employees--
       ``(i) who became participants as a result of a merger, 
     acquisition, or similar event which occurred during the 7-
     year period preceding the date the class is closed, or
       ``(ii) who became participants by reason of a merger of the 
     plan with another plan which had been in effect for at least 
     5 years as of the date of the merger,

     shall be disregarded, except that clause (ii) shall apply for 
     purposes of subparagraph (D) only if, under the merger, the 
     benefits, rights, or features under 1 plan are conformed to 
     the benefits, rights, or features of the other plan 
     prospectively.
       ``(G) Rules relating to average benefit.--For purposes of 
     subparagraph (E)--
       ``(i) the average benefit provided to participants under 
     the plan will be treated as having remained the same between 
     the 2 dates described in subparagraph (E)(ii) if the benefit 
     formula applicable to such participants has not changed 
     between such dates, and
       ``(ii) if the benefit formula applicable to 1 or more 
     participants under the plan has changed between such 2 dates, 
     then the average benefit under the plan shall be considered 
     to have increased by more than 50 percent only if--

       ``(I) the total amount determined under section 
     430(b)(1)(A)(i) for all participants benefitting under the 
     plan for the plan year in which the 5-year period described 
     in subparagraph (E) ends, exceeds
       ``(II) the total amount determined under section 
     430(b)(1)(A)(i) for all such participants for such plan year, 
     by using the benefit formula in effect for each such 
     participant for the first plan year in such 5-year period, by 
     more than 50 percent.

     In the case of a CSEC plan (as defined in section 414(y)), 
     the normal cost of the plan (as determined under section 
     433(j)(1)(B)) shall be used in lieu of the amount determined 
     under section 430(b)(1)(A)(i).
       ``(H) Treatment as single plan.--For purposes of 
     subparagraphs (E) and (G), a plan described in section 413(c) 
     shall be treated as a single plan rather than as separate 
     plans maintained by each employer in the plan.
       ``(I) Special rules.--For purposes of subparagraphs (A)(i) 
     and (B)(iii)(II), the following rules shall apply:
       ``(i) In applying section 410(b)(6)(C), the closing of the 
     class of participants shall not be treated as a significant 
     change in coverage under section 410(b)(6)(C)(i)(II).
       ``(ii) 2 or more plans shall not fail to be eligible to be 
     aggregated and treated as a single plan solely by reason of 
     having different plan years.

[[Page H9123]]

       ``(iii) Changes in the employee population shall be 
     disregarded to the extent attributable to individuals who 
     become employees or cease to be employees, after the date the 
     class is closed, by reason of a merger, acquisition, 
     divestiture, or similar event.
       ``(iv) Aggregation and all other testing methodologies 
     otherwise applicable under subsection (a)(4) and section 
     410(b) may be taken into account.

     The rule of clause (ii) shall also apply for purposes of 
     determining whether plans to which subparagraph (B)(i) 
     applies may be aggregated and treated as 1 plan for purposes 
     of determining whether such plans meet the requirements of 
     subsection (a)(4) and section 410(b).
       ``(J) Spun-off plans.--For purposes of this paragraph, if a 
     portion of a defined benefit plan described in subparagraph 
     (A) or (B)(iii) is spun off to another employer and the spun-
     off plan continues to satisfy the requirements of--
       ``(i) subparagraph (A)(i) or (B)(iii)(II), whichever is 
     applicable, if the original plan was still within the 3-year 
     period described in such subparagraph at the time of the spin 
     off, and
       ``(ii) subparagraph (A)(ii) or (B)(iii)(III), whichever is 
     applicable,
     the treatment under subparagraph (A) or (B) of the spun-off 
     plan shall continue with respect to such other employer.
       ``(2) Testing of defined contribution plans.--
       ``(A) Testing on a benefits basis.--A defined contribution 
     plan shall be permitted to be tested on a benefits basis if--
       ``(i) such defined contribution plan provides make-whole 
     contributions to a closed class of participants whose 
     accruals under a defined benefit plan have been reduced or 
     eliminated,
       ``(ii) for the plan year of the defined contribution plan 
     as of which the class eligible to receive such make-whole 
     contributions closes and the 2 succeeding plan years, such 
     closed class of participants satisfies the requirements of 
     section 410(b)(2)(A)(i) (determined by applying the rules of 
     paragraph (1)(I)),
       ``(iii) after the date as of which the class was closed, 
     any plan amendment to the defined contribution plan which 
     modifies the closed class or the allocations, benefits, 
     rights, and features provided to such closed class does not 
     discriminate significantly in favor of highly compensated 
     employees, and
       ``(iv) the class was closed before April 5, 2017, or the 
     defined benefit plan under clause (i) is described in 
     paragraph (1)(C) (as applied for purposes of paragraph 
     (1)(B)(iii)(IV)).
       ``(B) Aggregation with plans including matching 
     contributions.--
       ``(i) In general.--With respect to 1 or more defined 
     contribution plans described in subparagraph (A), for 
     purposes of determining compliance with subsection (a)(4) and 
     section 410(b), the portion of such plans which provides 
     make-whole contributions or other nonelective contributions 
     may be aggregated and tested on a benefits basis with the 
     portion of 1 or more other defined contribution plans which--

       ``(I) provides matching contributions (as defined in 
     subsection (m)(4)(A)),
       ``(II) provides annuity contracts described in section 
     403(b) which are purchased with matching contributions or 
     nonelective contributions, or
       ``(III) consists of an employee stock ownership plan 
     (within the meaning of section 4975(e)(7)) or a tax credit 
     employee stock ownership plan (within the meaning of section 
     409(a)).

       ``(ii) Special rules for matching contributions.--Rules 
     similar to the rules of paragraph (1)(B)(ii) shall apply for 
     purposes of clause (i).
       ``(C) Special rules for testing defined contribution plan 
     features providing matching contributions to certain older, 
     longer service participants.--In the case of a defined 
     contribution plan which provides benefits, rights, or 
     features to a closed class of participants whose accruals 
     under a defined benefit plan have been reduced or eliminated, 
     the plan shall not fail to satisfy the requirements of 
     subsection (a)(4) solely by reason of the composition of the 
     closed class or the benefits, rights, or features provided to 
     such closed class if the defined contribution plan and 
     defined benefit plan otherwise meet the requirements of 
     subparagraph (A) but for the fact that the make-whole 
     contributions under the defined contribution plan are made in 
     whole or in part through matching contributions.
       ``(D) Spun-off plans.--For purposes of this paragraph, if a 
     portion of a defined contribution plan described in 
     subparagraph (A) or (C) is spun off to another employer, the 
     treatment under subparagraph (A) or (C) of the spun-off plan 
     shall continue with respect to the other employer if such 
     plan continues to comply with the requirements of clauses 
     (ii) (if the original plan was still within the 3-year period 
     described in such clause at the time of the spin off) and 
     (iii) of subparagraph (A), as determined for purposes of 
     subparagraph (A) or (C), whichever is applicable.
       ``(3) Definitions.--For purposes of this subsection--
       ``(A) Make-whole contributions.--Except as otherwise 
     provided in paragraph (2)(C), the term `make-whole 
     contributions' means nonelective allocations for each 
     employee in the class which are reasonably calculated, in a 
     consistent manner, to replace some or all of the retirement 
     benefits which the employee would have received under the 
     defined benefit plan and any other plan or qualified cash or 
     deferred arrangement under subsection (k)(2) if no change had 
     been made to such defined benefit plan and such other plan or 
     arrangement. For purposes of the preceding sentence, 
     consistency shall not be required with respect to employees 
     who were subject to different benefit formulas under the 
     defined benefit plan.
       ``(B) References to closed class of participants.--
     References to a closed class of participants and similar 
     references to a closed class shall include arrangements under 
     which 1 or more classes of participants are closed, except 
     that 1 or more classes of participants closed on different 
     dates shall not be aggregated for purposes of determining the 
     date any such class was closed.
       ``(C) Highly compensated employee.--The term `highly 
     compensated employee' has the meaning given such term in 
     section 414(q).''.
       (b) Participation Requirements.--Section 401(a)(26) of such 
     Code is amended by adding at the end the following new 
     subparagraph:
       ``(I) Protected participants.--
       ``(i) In general.--A plan shall be deemed to satisfy the 
     requirements of subparagraph (A) if--

       ``(I) the plan is amended--

       ``(aa) to cease all benefit accruals, or
       ``(bb) to provide future benefit accruals only to a closed 
     class of participants,

       ``(II) the plan satisfies subparagraph (A) (without regard 
     to this subparagraph) as of the effective date of the 
     amendment, and
       ``(III) the amendment was adopted before April 5, 2017, or 
     the plan is described in clause (ii).

       ``(ii) Plans described.--A plan is described in this clause 
     if the plan would be described in subsection (o)(1)(C), as 
     applied for purposes of subsection (o)(1)(B)(iii)(IV) and by 
     treating the effective date of the amendment as the date the 
     class was closed for purposes of subsection (o)(1)(C).
       ``(iii) Special rules.--For purposes of clause (i)(II), in 
     applying section 410(b)(6)(C), the amendments described in 
     clause (i) shall not be treated as a significant change in 
     coverage under section 410(b)(6)(C)(i)(II).
       ``(iv) Spun-off plans.--For purposes of this subparagraph, 
     if a portion of a plan described in clause (i) is spun off to 
     another employer, the treatment under clause (i) of the spun-
     off plan shall continue with respect to the other 
     employer.''.
       (c) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall take effect on the date 
     of the enactment of this Act, without regard to whether any 
     plan modifications referred to in such amendments are adopted 
     or effective before, on, or after such date of enactment.
       (2) Special rules.--
       (A) Election of earlier application.--At the election of 
     the plan sponsor, the amendments made by this section shall 
     apply to plan years beginning after December 31, 2013.
       (B) Closed classes of participants.--For purposes of 
     paragraphs (1)(A)(iii), (1)(B)(iii)(IV), and (2)(A)(iv) of 
     section 401(o) of the Internal Revenue Code of 1986 (as added 
     by this section), a closed class of participants shall be 
     treated as being closed before April 5, 2017, if the plan 
     sponsor's intention to create such closed class is reflected 
     in formal written documents and communicated to participants 
     before such date.
       (C) Certain post-enactment plan amendments.--A plan shall 
     not be treated as failing to be eligible for the application 
     of section 401(o)(1)(A), 401(o)(1)(B)(iii), or 401(a)(26) of 
     such Code (as added by this section) to such plan solely 
     because in the case of--
       (i) such section 401(o)(1)(A), the plan was amended before 
     the date of the enactment of this Act to eliminate 1 or more 
     benefits, rights, or features, and is further amended after 
     such date of enactment to provide such previously eliminated 
     benefits, rights, or features to a closed class of 
     participants, or
       (ii) such section 401(o)(1)(B)(iii) or section 401(a)(26), 
     the plan was amended before the date of the enactment of this 
     Act to cease all benefit accruals, and is further amended 
     after such date of enactment to provide benefit accruals to a 
     closed class of participants. Any such section shall only 
     apply if the plan otherwise meets the requirements of such 
     section and in applying such section, the date the class of 
     participants is closed shall be the effective date of the 
     later amendment.

     SEC. 203. FIDUCIARY SAFE HARBOR FOR SELECTION OF LIFETIME 
                   INCOME PROVIDER.

       Section 404 of the Employee Retirement Income Security Act 
     of 1974 (29 U.S.C. 1104) is amended by adding at the end the 
     following:
       ``(e) Safe Harbor for Annuity Selection.--
       ``(1) In general.--With respect to the selection of an 
     insurer for a guaranteed retirement income contract, the 
     requirements of subsection (a)(1)(B) will be deemed to be 
     satisfied if a fiduciary--
       ``(A) engages in an objective, thorough, and analytical 
     search for the purpose of identifying insurers from which to 
     purchase such contracts;
       ``(B) with respect to each insurer identified under 
     subparagraph (A)--
       ``(i) considers the financial capability of such insurer to 
     satisfy its obligations under the guaranteed retirement 
     income contract; and
       ``(ii) considers the cost (including fees and commissions) 
     of the guaranteed retirement income contract offered by the 
     insurer in relation to the benefits and product features of 
     the contract and administrative services to be provided under 
     such contract; and
       ``(C) on the basis of such consideration, concludes that--
       ``(i) at the time of the selection, the insurer is 
     financially capable of satisfying its obligations under the 
     guaranteed retirement income contract; and
       ``(ii) the relative cost of the selected guaranteed 
     retirement income contract as described in subparagraph 
     (B)(ii) is reasonable.
       ``(2) Financial capability of the insurer.--A fiduciary 
     will be deemed to satisfy the requirements of paragraphs 
     (1)(B)(i) and (1)(C)(i) if--

[[Page H9124]]

       ``(A) the fiduciary obtains written representations from 
     the insurer that--
       ``(i) the insurer is licensed to offer guaranteed 
     retirement income contracts;
       ``(ii) the insurer, at the time of selection and for each 
     of the immediately preceding 7 plan years--

       ``(I) operates under a certificate of authority from the 
     insurance commissioner of its domiciliary State which has not 
     been revoked or suspended;
       ``(II) has filed audited financial statements in accordance 
     with the laws of its domiciliary State under applicable 
     statutory accounting principles;
       ``(III) maintains (and has maintained) reserves which 
     satisfies all the statutory requirements of all States where 
     the insurer does business; and
       ``(IV) is not operating under an order of supervision, 
     rehabilitation, or liquidation;

       ``(iii) the insurer undergoes, at least every 5 years, a 
     financial examination (within the meaning of the law of its 
     domiciliary State) by the insurance commissioner of the 
     domiciliary State (or representative, designee, or other 
     party approved by such commissioner); and
       ``(iv) the insurer will notify the fiduciary of any change 
     in circumstances occurring after the provision of the 
     representations in clauses (i), (ii), and (iii) which would 
     preclude the insurer from making such representations at the 
     time of issuance of the guaranteed retirement income 
     contract; and
       ``(B) after receiving such representations and as of the 
     time of selection, the fiduciary has not received any notice 
     described in subparagraph (A)(iv) and is in possession of no 
     other information which would cause the fiduciary to question 
     the representations provided.
       ``(3) No requirement to select lowest cost.--Nothing in 
     this subsection shall be construed to require a fiduciary to 
     select the lowest cost contract. A fiduciary may consider the 
     value of a contract, including features and benefits of the 
     contract and attributes of the insurer (including, without 
     limitation, the insurer's financial strength) in conjunction 
     with the cost of the contract.
       ``(4) Time of selection.--
       ``(A) In general.--For purposes of this subsection, the 
     time of selection is--
       ``(i) the time that the insurer and the contract are 
     selected for distribution of benefits to a specific 
     participant or beneficiary; or
       ``(ii) if the fiduciary periodically reviews the continuing 
     appropriateness of the conclusion described in paragraph 
     (1)(C) with respect to a selected insurer, taking into 
     account the considerations described in such paragraph, the 
     time that the insurer and the contract are selected to 
     provide benefits at future dates to participants or 
     beneficiaries under the plan.

     Nothing in the preceding sentence shall be construed to 
     require the fiduciary to review the appropriateness of a 
     selection after the purchase of a contract for a participant 
     or beneficiary.
       ``(B) Periodic review.--A fiduciary will be deemed to have 
     conducted the periodic review described in subparagraph 
     (A)(ii) if the fiduciary obtains the written representations 
     described in clauses (i), (ii), and (iii) of paragraph (2)(A) 
     from the insurer on an annual basis, unless the fiduciary 
     receives any notice described in paragraph (2)(A)(iv) or 
     otherwise becomes aware of facts that would cause the 
     fiduciary to question such representations.
       ``(5) Limited liability.--A fiduciary which satisfies the 
     requirements of this subsection shall not be liable following 
     the distribution of any benefit, or the investment by or on 
     behalf of a participant or beneficiary pursuant to the 
     selected guaranteed retirement income contract, for any 
     losses that may result to the participant or beneficiary due 
     to an insurer's inability to satisfy its financial 
     obligations under the terms of such contract.
       ``(6) Definitions.--For purposes of this subsection--
       ``(A) Insurer.--The term `insurer' means an insurance 
     company, insurance service, or insurance organization, 
     including affiliates of such companies.
       ``(B) Guaranteed retirement income contract.--The term 
     `guaranteed retirement income contract' means an annuity 
     contract for a fixed term or a contract (or provision or 
     feature thereof) which provides guaranteed benefits annually 
     (or more frequently) for at least the remainder of the life 
     of the participant or the joint lives of the participant and 
     the participant's designated beneficiary as part of an 
     individual account plan.''.

                  TITLE III--OTHER SAVINGS PROVISIONS

     SEC. 301. UNIVERSAL SAVINGS ACCOUNTS.

       (a) In General.--Subchapter F of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by adding at the end the 
     following new part:

                 ``PART IX--UNIVERSAL SAVINGS ACCOUNTS

``Sec. 530U. Universal Savings Accounts.

     ``SEC. 530U. UNIVERSAL SAVINGS ACCOUNTS.

       ``(a) General Rule.--A Universal Savings Account shall be 
     exempt from taxation under this subtitle. Notwithstanding the 
     preceding sentence, such account shall be subject to the 
     taxes imposed by section 511 (relating to imposition of tax 
     on unrelated business income of charitable organizations).
       ``(b) Universal Savings Account.--For purposes of this 
     section, the term `Universal Savings Account' means a trust 
     created or organized in the United States by an individual 
     for the exclusive benefit of such individual and which is 
     designated (in such manner as the Secretary may prescribe) at 
     the time of the establishment of the trust as a Universal 
     Savings Account, but only if the written governing instrument 
     creating the trust meets the following requirements:
       ``(1) Except in the case of a qualified rollover 
     contribution described in subsection (d)--
       ``(A) no contribution will be accepted unless it is in 
     cash, and
       ``(B) contributions will not be accepted for the taxable 
     year in excess of the contribution limit specified in 
     subsection (c)(2).
       ``(2) No distribution will be made unless it is--
       ``(A) cash, or
       ``(B) property that--
       ``(i) has a readily ascertainable fair market value, and
       ``(ii) is identified by the Secretary in regulations or 
     other guidance as property to which this subparagraph 
     applies.
       ``(3) The trustee is a bank (as defined in section 408(n)) 
     or another person who demonstrates to the satisfaction of the 
     Secretary that the manner in which that person will 
     administer the trust will be consistent with the requirements 
     of this section.
       ``(4) No part of the trust assets will be invested in life 
     insurance contracts or collectibles (as defined in section 
     408(m)).
       ``(5) The interest of an individual in the balance of his 
     account is nonforfeitable.
       ``(6) The assets of the trust shall not be commingled with 
     other property except in a common trust fund or common 
     investment fund.
       ``(c) Treatment of Distributions and Contributions.--
       ``(1) Distributions.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     any distribution from a Universal Savings Account shall not 
     be includible in gross income.
       ``(B) Net income attributable to excess contributions.--Any 
     distribution of net income described in section 4973(i)(2) 
     shall be includible in the gross income of the account holder 
     in the taxable year in which the contribution to which such 
     net income relates was made.
       ``(2) Contribution limit.--
       ``(A) In general.--The aggregate amount of contributions 
     (other than qualified rollover contributions described in 
     subsection (d)) for any taxable year to all Universal Savings 
     Accounts maintained for the benefit of an individual shall 
     not exceed the lesser of--
       ``(i) $2,500, or
       ``(ii) an amount equal to the compensation (within the 
     meaning of section 219) includible in such individual's gross 
     income for such taxable year.
       ``(B) No contributions for dependents.--In the case of an 
     individual who is a dependent of another taxpayer for a 
     taxable year beginning in the calendar year in which such 
     individual's taxable year begins, the dollar amount under 
     subparagraph (A) for such individual's taxable year shall be 
     zero.
       ``(C) Special rule in case of joint return.--
       ``(i) In general.--In the case of an individual to whom 
     this clause applies, the amount determined under subparagraph 
     (A)(ii) with respect to such individual for the taxable year 
     shall not be less than an amount equal to the sum of--

       ``(I) the compensation of such individual includible in 
     gross income for the taxable year, plus
       ``(II) the compensation of such individual's spouse 
     includible in gross income for the taxable year reduced (but 
     not below zero) by the amount contributed for the taxable 
     year to all Universal Savings Accounts maintained for the 
     benefit of such spouse.

       ``(ii) Individual to whom clause (i) applies.--Clause (i) 
     shall apply to any individual--

       ``(I) who files a joint return for the taxable year, and
       ``(II) whose compensation includible in gross income for 
     the taxable year is less than the compensation of such 
     individual's spouse includible in gross income for the 
     taxable year.

       ``(D) Cost-of-living adjustment.--In the case of any 
     taxable year beginning in a calendar year after 2019, the 
     $2,500 amount under subparagraph (A)(i) shall be increased by 
     an amount equal to--
       ``(i) such dollar amount, multiplied by
       ``(ii) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year, determined by 
     substituting `calendar year 2018' for `calendar year 2016' in 
     subparagraph (A)(ii) thereof.

     If any amount after adjustment under the preceding sentence 
     is not a multiple of $100, such amount shall be rounded to 
     the next lower multiple of $100.
       ``(d) Qualified Rollover Contribution.--For purposes of 
     this section, the term `qualified rollover contribution' 
     means a contribution to a Universal Savings Account from 
     another such account of the same individual, but only if such 
     amount is contributed not later than the 60th day after the 
     distribution from such other account.
       ``(e) Treatment of Account Upon Death.--Upon death of any 
     account holder of a Universal Savings Account--
       ``(1) Spouse.--In the case of the account holder's 
     surviving spouse acquiring such account holder's interest in 
     such account by reason of the death of the account holder, 
     such account shall be treated as if the spouse were the 
     account holder.
       ``(2) Other cases.--In any other case--
       ``(A) all amounts in such account shall be treated as 
     distributed on the date of such individual's death, and
       ``(B) such account shall cease to be treated as a Universal 
     Savings Account.
       ``(f) Other Special Rules.--
       ``(1) Community property laws.--This section shall be 
     applied without regard to any community property laws.
       ``(2) Loss of taxation exemption of account where 
     individual engages in prohibited transaction; effect of 
     pledging account as security.--Rules similar to the rules

[[Page H9125]]

     of paragraphs (2) and (4) of section 408(e) shall apply to 
     any Universal Savings Account.
       ``(g) Reports.--The trustee of a Universal Savings Account 
     shall make such reports regarding such account to the 
     Secretary and to the account holder with respect to 
     contributions, distributions, and such other matters as the 
     Secretary may require. Such reports shall be--
       ``(1) filed at such time and in such manner as the 
     Secretary provides, and
       ``(2) furnished to account holders--
       ``(A) not later than January 31 of the calendar year 
     following the calendar year to which such reports relate, and
       ``(B) in such manner as the Secretary provides.''.
       (b) Tax on Excess Contributions.--
       (1) In general.--Section 4973(a) of such Code is amended by 
     striking ``or'' at the end of paragraph (5), by inserting 
     ``or'' at the end of paragraph (6), and by inserting after 
     paragraph (6) the following new paragraph:
       ``(7) a Universal Savings Account (as defined in section 
     530U),''.
       (2) Excess contribution.--Section 4973 of such Code is 
     amended by adding at the end the following new subsection:
       ``(i) Excess Contributions to Universal Savings Accounts.--
     For purposes of this section--
       ``(1) In general.--In the case of Universal Savings 
     Accounts (within the meaning of section 530U), the term 
     `excess contributions' means the sum of--
       ``(A) the amount (if any) by which the amount contributed 
     for the taxable year to such accounts (other than qualified 
     rollover contributions (as defined in section 530U(d))) 
     exceeds the contribution limit under section 530U(c)(2) for 
     such taxable year, and
       ``(B) the amount determined under this subsection for the 
     preceding taxable year, reduced by the sum of--
       ``(i) the distributions out of the account for the taxable 
     year, and
       ``(ii) the amount (if any) by which the maximum amount 
     allowable as a contribution under section 530U(c)(2) for the 
     taxable year exceeds the amount contributed to the accounts 
     for the taxable year.
       ``(2) Special rule.--A contribution shall not be taken into 
     account under paragraph (1) if such contribution (together 
     with the amount of net income attributable to such 
     contribution) is distributed to the account holder on or 
     before the due date of the account holder's return of tax for 
     such taxable year.''.
       (c) Tax on Prohibited Transactions.--Section 4975(e)(1) of 
     such Code is amended by striking ``or'' at the end of 
     subparagraph (F), by striking the period at the end of 
     subparagraph (G) and inserting ``, or'', and by adding at the 
     end the following new subparagraph:
       ``(H) a Universal Savings Account (as defined in section 
     530U).''.
       (d) Failure to Provide Reports on Universal Savings 
     Accounts.--Section 6693(a)(2) of such Code is amended by 
     striking ``and'' at the end of subparagraph (E), by striking 
     the period at the end of subparagraph (F) and inserting ``, 
     and'', and by inserting after subparagraph (F) the following 
     new subparagraph:
       ``(G) section 530U(g) (relating to Universal Savings 
     Accounts).''.
       (e) Conforming Amendment.--The table of parts for 
     subchapter F of chapter 1 of such Code is amended by adding 
     at the end the following new item:

                ``Part IX. Universal Savings Accounts''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2018.

     SEC. 302. EXPANSION OF SECTION 529 PLANS.

       (a) Distributions for Certain Expenses Associated With 
     Registered Apprenticeship Programs.--Section 529(c) of the 
     Internal Revenue Code of 1986 is amended by adding at the end 
     the following new paragraph:
       ``(8) Treatment of certain expenses associated with 
     registered apprenticeship programs.--Any reference in this 
     subsection to the term `qualified higher education expense' 
     shall include a reference to expenses for fees, books, 
     supplies, and equipment required for the participation of a 
     designated beneficiary in an apprenticeship program 
     registered and certified with the Secretary of Labor under 
     section 1 of the National Apprenticeship Act (29 U.S.C. 
     50).''.
       (b) Distributions for Certain Homeschooling Expenses.--
     Section 529(c)(7) of such Code is amended by striking 
     ``include a reference to'' and all that follows and inserting 
     ``include a reference to--
       ``(A) expenses for tuition in connection with enrollment or 
     attendance of a designated beneficiary at an elementary or 
     secondary public, private, or religious school, and
       ``(B) expenses, with respect to a designated beneficiary, 
     for--
       ``(i) curriculum and curricular materials,
       ``(ii) books or other instructional materials,
       ``(iii) online educational materials,
       ``(iv) tuition for tutoring or educational classes outside 
     of the home (but only if the tutor or class instructor is not 
     related (within the meaning of section 152(d)(2)) to the 
     student),
       ``(v) dual enrollment in an institution of higher 
     education, and
       ``(vi) educational therapies for students with 
     disabilities,

     in connection with a homeschool (whether treated as a 
     homeschool or a private school for purposes of applicable 
     State law).''.
       (c) Distributions for Qualified Education Loan 
     Repayments.--
       (1) In general.--Section 529(c) of such Code, as amended by 
     subsection (a), is amended by adding at the end the following 
     new paragraph:
       ``(9) Treatment of qualified education loan repayments.--
       ``(A) In general.--Any reference in this subsection to the 
     term `qualified higher education expense' shall include a 
     reference to amounts paid as principal or interest on any 
     qualified education loan (as defined in section 221(d)) of 
     the designated beneficiary or a sibling of the designated 
     beneficiary.
       ``(B) Limitation.--The amount of distributions treated as a 
     qualified higher education expense under this paragraph with 
     respect to the loans of any individual shall not exceed 
     $10,000 (reduced by the amount of distributions so treated 
     for all prior taxable years).
       ``(C) Special rules for siblings of the designated 
     beneficiary.--
       ``(i) Separate accounting.--For purposes of subparagraph 
     (B) and subsection (d), amounts treated as a qualified higher 
     education expense with respect to the loans of a sibling of 
     the designated beneficiary shall be taken into account with 
     respect to such sibling and not with respect to such 
     designated beneficiary.
       ``(ii) Sibling defined.--For purposes of this paragraph, 
     the term `sibling' means an individual who bears a 
     relationship to the designated beneficiary which is described 
     in section 152(d)(2)(B).''.
       (2) Coordination with deduction for student loan 
     interest.--Section 221(e)(1) of such Code is amended by 
     adding at the end the following: ``The deduction otherwise 
     allowable under subsection (a) (prior to the application of 
     subsection (b)) to the taxpayer for any taxable year shall be 
     reduced (but not below zero) by so much of the distributions 
     treated as a qualified higher education expense under section 
     529(c)(9) with respect to loans of the taxpayer as would be 
     includible in gross income under section 529(c)(3)(A) for 
     such taxable year but for such treatment.''.
       (d) Distributions for Certain Elementary and Secondary 
     School Expenses in Addition to Tuition.--Section 
     529(c)(7)(A), as amended by subsection (b), is amended to 
     read as follows:
       ``(A) expenses described in section 530(b)(3)(A)(i) in 
     connection with enrollment or attendance of a designated 
     beneficiary at an elementary or secondary public, private, or 
     religious school, and''.
       (e) Unborn Children Allowed as Account Beneficiaries.--
     Section 529(e) is amended by adding at the end the following 
     new paragraph:
       ``(6) Treatment of unborn children.--
       ``(A) In general.--Nothing shall prevent an unborn child 
     from being treated as a designated beneficiary or an 
     individual under this section.
       ``(B) Unborn child.--For purposes of this paragraph--
       ``(i) In general.--The term `unborn child' means a child in 
     utero.
       ``(ii) Child in utero.--The term `child in utero' means a 
     member of the species homo sapiens, at any stage of 
     development, who is carried in the womb.''.
       (f) Effective Dates.--
       (1) In general.--Except as otherwise provided in this 
     subsection, the amendments made by this section shall apply 
     to distributions made after December 31, 2018.
       (2) Unborn children allowed as account beneficiaries.--The 
     amendment made by subsection (e) shall apply to contributions 
     made after December 31, 2018.

     SEC. 303. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR 
                   INDIVIDUALS IN CASE OF BIRTH OF CHILD OR 
                   ADOPTION.

       (a) In General.--Section 72(t)(2) of the Internal Revenue 
     Code of 1986 is amended by adding at the end the following 
     new subparagraph:
       ``(H) Distributions from retirement plans in case of birth 
     of child or adoption.--
       ``(i) In general.--Any qualified birth or adoption 
     distribution.
       ``(ii) Limitation.--The aggregate amount which may be 
     treated as qualified birth or adoption distributions by any 
     individual with respect to any birth or adoption shall not 
     exceed $7,500.
       ``(iii) Qualified birth or adoption distribution.--For 
     purposes of this subparagraph--

       ``(I) In general.--The term `qualified birth or adoption 
     distribution' means any distribution from an applicable 
     eligible retirement plan to an individual if made during the 
     1-year period beginning on the date on which a child of the 
     individual is born or on which the legal adoption by the 
     individual of an eligible child is finalized.
       ``(II) Eligible child.--The term `eligible child' means any 
     individual (other than a child of the taxpayer's spouse) who 
     has not attained age 18 or is physically or mentally 
     incapable of self-support.

       ``(iv) Treatment of plan distributions.--

       ``(I) In general.--If a distribution to an individual would 
     (without regard to clause (ii)) be a qualified birth or 
     adoption distribution, a plan shall not be treated as failing 
     to meet any requirement of this title merely because the plan 
     treats the distribution as a qualified birth or adoption 
     distribution, unless the aggregate amount of such 
     distributions from all plans maintained by the employer (and 
     any member of any controlled group which includes the 
     employer) to such individual exceeds $7,500.
       ``(II) Controlled group.--For purposes of subclause (I), 
     the term `controlled group' means any group treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414.

       ``(v) Amount distributed may be repaid.--

       ``(I) In general.--Any individual who receives a qualified 
     birth or adoption distribution may make one or more 
     contributions in an aggregate amount not to exceed the amount 
     of such distribution to an applicable eligible retirement 
     plan of which such individual is a beneficiary and to which a 
     rollover contribution of such distribution could be made 
     under section 402(c), 403(a)(4), 403(b)(8), 408(d)(3), or 
     457(e)(16), as the case may be.
       ``(II) Limitation on contributions to applicable eligible 
     retirement plans other than

[[Page H9126]]

     IRAs.--The aggregate amount of contributions made by an 
     individual under subclause (I) to any applicable eligible 
     retirement plan which is not an individual retirement plan 
     shall not exceed the aggregate amount of qualified birth or 
     adoption distributions which are made from such plan to such 
     individual. Subclause (I) shall not apply to contributions to 
     any applicable eligible retirement plan which is not an 
     individual retirement plan unless the individual is eligible 
     to make contributions (other than those described in 
     subclause (I)) to such applicable eligible retirement plan.
       ``(III) Treatment of repayments of distributions from 
     applicable eligible retirement plans other than IRAs.--If a 
     contribution is made under subclause (I) with respect to a 
     qualified birth or adoption distribution from an applicable 
     eligible retirement plan other than an individual retirement 
     plan, then the taxpayer shall, to the extent of the amount of 
     the contribution, be treated as having received such 
     distribution in an eligible rollover distribution (as defined 
     in section 402(c)(4)) and as having transferred the amount to 
     the applicable eligible retirement plan in a direct trustee 
     to trustee transfer within 60 days of the distribution.
       ``(IV) Treatment of repayments for distributions from 
     iras.--If a contribution is made under subclause (I) with 
     respect to a qualified birth or adoption distribution from an 
     individual retirement plan, then, to the extent of the amount 
     of the contribution, such distribution shall be treated as a 
     distribution described in section 408(d)(3) and as having 
     been transferred to the applicable eligible retirement plan 
     in a direct trustee to trustee transfer within 60 days of the 
     distribution.

       ``(vi) Definition and special rules.--For purposes of this 
     subparagraph--

       ``(I) Applicable eligible retirement plan.--The term 
     `applicable eligible retirement plan' means an eligible 
     retirement plan (as defined in section 402(c)(8)(B)) other 
     than a defined benefit plan.
       ``(II) Exemption of distributions from trustee to trustee 
     transfer and withholding rules.--For purposes of sections 
     401(a)(31), 402(f), and 3405, a qualified birth or adoption 
     distribution shall not be treated as an eligible rollover 
     distribution.
       ``(III) Taxpayer must include tin.--A distribution shall 
     not be treated as a qualified birth or adoption distribution 
     with respect to any child or eligible child unless the 
     taxpayer includes the name, age, and TIN of such child or 
     eligible child on the taxpayer's return of tax for the 
     taxable year.
       ``(IV) Distributions treated as meeting plan distribution 
     requirements.--Any qualified birth or adoption distribution 
     shall be treated as meeting the requirements of sections 
     401(k)(2)(B)(i), 403(b)(7)(A)(ii), 403(b)(11), and 
     457(d)(1)(A).''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2018.

                      TITLE IV--BUDGETARY EFFECTS

     SEC. 401. BUDGETARY EFFECTS.

       (a) Statutory PAYGO Scorecards.--The budgetary effects of 
     this Act shall not be entered on either PAYGO scorecard 
     maintained pursuant to section 4(d) of the Statutory Pay-As-
     You-Go Act of 2010.
       (b) Senate PAYGO Scorecards.--The budgetary effects of this 
     Act shall not be entered on any PAYGO scorecard maintained 
     for purposes of section 4106 of H. Con. Res. 71 (115th 
     Congress).

  The SPEAKER pro tempore. The bill, as amended, shall be debatable for 
1 hour, equally divided and controlled by the chair and ranking 
minority member of the Committee on Ways and Means.
  The gentleman from Pennsylvania (Mr. Kelly) and the gentleman from 
Texas (Mr. Doggett) each will control 30 minutes.
  The Chair recognizes the gentleman from Pennsylvania.


                             General Leave

  Mr. KELLY of Pennsylvania. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days in which to revise and extend 
their remarks and include extraneous material on H.R. 6757, currently 
under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Pennsylvania?
  There was no objection.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I yield myself such time as I 
may consume and thank leadership for bringing this bill to the floor.
  Mr. Speaker, today, I rise in support of H.R. 6757, the Family 
Savings Act, which will make it easier for American families and 
individuals to save for their future, whether it is retirement, 
education, or healthcare, helping them to make sure that they are 
keeping more of their hard-earned income, more of their own money, and 
planning for their future.
  This bill will also help local businesses provide retirement plans to 
their workers and help workers participate more in all those plans.
  Now, according to the Department of Labor and the Federal Reserve, 
about 69 million American workers have formal retirement plans, which, 
together, have almost $14 trillion in savings for them.
  This bill will incentivize hardworking American taxpayers to continue 
to put away more of their own money for their future.
  One of the things I remember so clearly from growing up is my parents 
talking to us all the time and saying: The one thing we never want to 
be for you kids is a burden. We never want to be a hardship for you as 
we go into our senior years.
  I thought to myself at that time: How could anybody look across the 
table at people who had worked so hard, had come through the Great 
Depression, had come through World War II, had come through the Korean 
war, had gone through all kinds of difficulties and had always provided 
for us and think that? How in the world could they ever think that they 
would be a burden to me or to my brothers and sisters?
  It was unimaginable for me, but that is what they thought. That is 
what they worried about. They never wanted to be a burden to anybody.
  Just think about that for a minute. That generation, often described 
as the Greatest Generation, was telling us, the next generation, that 
they never wanted to be a burden.
  What we are talking about today is relieving the burden on the next 
generation by making it easier for people to go into their retirement 
feeling that they have enough income to actually enjoy their golden 
years.
  H.R. 6757 would allow for every American worker, at all income 
levels, to save money in universal savings accounts, in which those 
earnings would be tax-free and could be taken out at any time without a 
penalty. How unique to be able to take your own money out and use it 
without being penalized by the Federal Government.
  It would also allow Americans to use their 529 plans to pay for costs 
associated with home schooling, apprenticeships, just like they now can 
for primary and secondary schools thanks to the Tax Cuts and Jobs Act.
  And if one sibling has more money in a 529 account than he or she 
needs, another sibling can use some of that money to help pay down 
their student loans.
  This bill would allow younger taxpayers to take out some of their own 
money in their retirement account without penalty when they have a new 
baby or have an opportunity to adopt a child. This way, younger 
Americans will feel secure in starting to save for their retirement, 
knowing that the money could still be there for them at one of the most 
expensive times in their lives.
  H.R. 6757 would also make it easier for small employers to pull 
together and offer retirement plans to their team, to the folks they 
work with, their associates. This would help bridge that divide between 
what benefits large employers might be able to offer to their employees 
but smaller employers may only wish to be able to do but really can't.
  The bill also allows for older Americans to continue saving in their 
IRAs if they choose to continue working in their later years, and it 
allows them to keep their own money in their IRAs if those accounts are 
relatively modest.
  For those workers who want their savings accounts to be in 
conservative investments, such as annuities, this bill reduces the cost 
of doing that.
  Finally, this bill would also help our brave men and women in the 
Reserves put away more of their retirement by letting them contribute 
the maximum amount to their military retirement accounts while also 
contributing to a retirement account from the private sector.
  Mr. Speaker, let me tell you why we are really here today. We are 
really here today because of the overwhelming success of the Tax Cuts 
and Jobs Act. It has worked. It is incredible, the growth in our 
economy.
  The number one priority from the beginning of everything we did was 
about pro-growth legislation that actually made it easier on 
hardworking American families. You know what, despite what you may hear 
and the rattle from the other side, it worked, and it is working every 
day. We can see it in every measurable event of what is happening in 
America.
  Thanks to tax reform, middle-income families in western Pennsylvania 
and across America are seeing bigger paychecks, more take-home money. 
How

[[Page H9127]]

odd that we allow them to keep more of their own money. That is just 
who we are as Americans.
  Democrats have chosen to distort this success. Republicans are 
choosing to secure the success by making the tax cuts for middle-income 
families permanent. We keep hearing: Yeah, yeah, but you are not really 
taking care of them.
  The idea that we use identity politics every day in every way in this 
House is absolutely deplorable. Tax reform 2.0 is all about that. The 
truth of the Tax Cuts and Jobs Act is its success.
  The saddest part of it all is not one of our Democratic colleagues 
voted for it. For that, they will continue to distort the future and 
use identity politics.
  Mr. Speaker, I think we have other people who want to talk on this, 
but for now, I reserve the balance of my time.
  Mr. DOGGETT. Mr. Speaker, I yield myself 5 minutes.
  Mr. Speaker, America does, in fact, face a retirement crisis. Nearly 
half of Americans approaching retirement years have absolutely no 
retirement savings. There is not much gold in their golden years.
  Four out of 10 Americans in a recent survey indicated that they are 
living paycheck to paycheck. They are barely making ends meet. They had 
little or nothing available in reserve.
  When they were asked if they could meet a sudden, unexpected $400 
medical emergency, 4 out of 10 Americans said they could not even do 
that.

                              {time}  1445

  Those are the individuals who certainly do not have the resources to 
save enough to set up a standard of living in retirement comparable to 
what they had before retiring.
  So, as usual, our Republican colleagues are masters at naming bills. 
It is just what they put in the bills that is a problem.
  Now, this bill is a good example. This is the Family Savings Act, but 
whose family gets the savings? Well, if you are out there listening, 
probably not your family. For families that have little or nothing in 
savings, this bill does nothing.
  Much like the bloated Republican tax scam and its sorry sequel that 
AARP condemned this very day, this Republican bill is all about helping 
those at the top and doing little or nothing for those who are 
struggling to have a golden year in retirement.
  There are, in fact, some modest measures that they have got tucked in 
this bill that I support and that AARP supports. And I agree with AARP 
that we should encourage more small employers to offer retirement 
plans. I am all for the little good parts in the bill. It is just the 
giant omissions that I oppose.
  The first of those omissions is the almost half of Americans that 
they forgot about, that they left out of this bill.
  As usual, the second big problem is they haven't got the slightest 
care about how this bill is paid for. They are going to go out and 
borrow more money from the Saudis and the Chinese and anybody else we 
can beg for to pay for the debt in order to pay for this. They don't 
pay for a penny of it. That is consistent with their approach, the 
proud success of this past year, adding trillions of dollars to the 
public debt because they don't care about it anymore. All their budget 
deficit hawks, they flew south for the winter, and they stayed there.
  The people who can't save at the moment for retirement, they are the 
folks who rely on one of the most important programs and set of 
programs that this Congress ever approved, and that is, of course, 
Social Security and Medicare--over Republican objection.
  Now everybody seems to be for those programs, but they are 
jeopardized when you add trillions of additional dollars to our debt, 
and that is what this bill contributes to. It adds $21 billion in debt. 
Nearly half of its cost is for what they call ``universal savings 
accounts.'' They should be better known as universal tax shelters. And 
they will do little to increase retirement savings. Rather, they will 
be universally exploited by people who are already saving to get a 
little bit more tax benefit.
  Over the next five years, existing tax incentives--before this bill 
is ever approved, those that are already in the law--for retirement 
savings will cost us over $1 trillion. One study found that two-thirds 
of the benefits of this $1 trillion of tax expenditures goes to the top 
20 percent of Americans.
  I don't begrudge any of them. One of them is me. One of them is every 
Member of this Congress. I think we need to encourage Members of 
Congress and all Americans to save more.
  I expect that those of us who are using these tax-advantaged accounts 
now don't need a great deal of additional incentive to use them to the 
maximum. What we do need is to help those Americans who couldn't afford 
that $400 emergency or who have nothing in retirement savings except 
their Social Security check. It is not that they don't want to save. It 
is that, if you can't pay $400 for a doctor bill you didn't expect, you 
are not going to have very much saved when it comes time to retire.
  Now, surely this Congress can do more for these families. I must say, 
I don't really mean this Congress. I mean the one that is coming in 
January that cares about the retirement crisis we have now, not the one 
that has shown indifference to half of Americans.
  What we get today, instead, is just another tax incentive for 
shifting retirement savings around.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. DOGGETT. Mr. Speaker, I yield myself an additional 2 minutes.
  Mr. Speaker, to take full advantage of this bill, you need to have 
about $100,000 in income. If you even look at this bill, as the Joint 
Committee on Taxation has done, you will see that two out of three 
Americans are not expected to use it at all because it doesn't help 
them.
  And what about the one-third who will use it? They are the people, 
like me, like the other Members of Congress, who earn, on average, 
twice the median income in this country.
  So it does help those of us who have been successful, those at the 
very top who are the wealthiest. It doesn't help the rest of America.
  For those with the resources, the Joint Committee on Taxation looked 
at the huge price tag on this bill, and they said that what we are 
basically looking at, and I quote it, is it ``derives from taxpayers 
shifting savings that are allocated to other types of taxable accounts 
into a universal savings account'', so just moving the money around.
  And we now have a study that really shows what a great job these guys 
have done with reference to this concept. It is a study that shows, for 
every dollar of additional debt you get--a little bit of a similar 
program that was studied--you get 1 penny of additional savings. That 
is the bargain they are offering us today, really. Spend a dollar, 
borrow a dollar from the Chinese, and you will generate 1 cent of 
additional savings.
  So under this so-called universal tax shelter, the earning returns 
from their investment portfolio allow them to avoid some capital gains 
tax, cost the Treasury, but the Republican universe just doesn't 
include many ordinary Americans.
  It is those who don't have retirement savings in tax-advantaged 
accounts, who rely on Medicare and Social Security, we need to protect 
that basic framework for retirement for, and you don't protect it by 
borrowing ourselves into further debt.
  Mr. Speaker, I reserve the balance of my time.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I remind my friends on the other side that a rising tide 
lifts all boats. There happens to be 6.9 million jobs now looking for 
somebody to fill them.
  And when we talk about going into retirement, could we please stop 
trying to divide, divide, divide America? Could we please start being 
the United States of America instead of the divided States of America?
  Every single American benefits from the Tax Cuts and Jobs Act. That 
is the fact. I am sorry you didn't sign on for it. We are going to give 
you a second chance today to show your true colors, which needs to red, 
white, and blue, not just blue.
  Mr. Speaker, I yield 3 minutes to the gentleman from Ohio (Mr. 
Renacci).

[[Page H9128]]

  

  Mr. RENACCI. Mr. Speaker, I rise in support of my good friend 
Representative  Mike Kelly's H.R. 6757, the Family Savings Act.
  Mr. Kelly and I have been champions of helping more Americans gain 
access to retirement savings since coming to Congress in 2011, and I am 
proud of the bill before us today. Included in this legislation is the 
bipartisan Retirement Security for American Workers Act that I 
introduced along with my friends Representatives Buchanan, Neal, and 
Kind for the past two Congresses.
  Unfortunately, there are still too many Americans who do not have 
access to a retirement savings plan through their employer. In fact, 
nearly a third of the private-sector workforce lacks access to an 
employer-sponsored plan, with even less Americans having access if they 
work for a small business.
  Not having access to an employer-sponsored plan significantly 
increases the chances that an individual fails to put aside money for 
retirement. For many Americans, this means that they are vastly 
unprepared to retire comfortably.
  From an employer's perspective, not being able to offer a retirement 
plan makes it much more difficult to recruit and retain employees.
  I heard from CBIZ, a financial services and business consulting 
company headquartered in Cleveland, Ohio, that too often small 
businesses want to provide retirement plans to their employees but that 
the cost and administrative burden are significant roadblocks when 
making this decision. That is why it is important that Congress act to 
remove some of the red tape under current law that makes it difficult 
for business owners to provide retirement savings.
  The Retirement Security for American Workers Act that is included in 
this bill before us today will help do just that. This provision will 
allow two or more companies that may be in the same industry to join 
together in order to offer either a defined contribution retirement 
plan or an IRA, often referred to as open multiple employer plans.
  Under current law and Department of Labor interpretation, employers 
who do not have a nexus are not able to ban together and provide a 
pooled retirement plan. By eliminating this Department of Labor 
requirement, this bill will allow more companies to provide retirement 
plans by allowing businesses--especially small businesses--to take 
advantage of cost and administrative efficiencies that often prevent 
businesses from offering a 401(k).
  Additionally, the open MEP's language in the bill will provide relief 
from the one bad apple rule that punishes all employees in a pooled 
retirement plan if just one employer fails to meet requirements. This 
legislation will incentivize more businesses to join together and 
provide retirement plans to their employees.
  These commonsense proposals, along with the other provisions within 
the Family Savings Act, will unlock the opportunity for more persons to 
save for their future.
  I thank my friend, Mr. Kelly, for his leadership in bringing this 
legislation to the floor today. I encourage my colleagues to support 
this legislation.
  Mr. DOGGETT. Mr. Speaker, I yield myself 30 seconds.
  Mr. Speaker, before yielding to Mr. Davis, let me say this is not 
about lifting all boats; It is about lifting all yachts. And the 40, 50 
percent of Americans who have only a leaky rowboat going into 
retirement don't get a dime out of this bill.
  As to the tax bill as a whole, Republicans came out and bragged, the 
President put it in writing: You will get $4,000 in additional income 
trickling down to you every year from this corporate tax cut. Now we 
know that only 4.4 percent of Americans have gotten a dime of 
additional compensation as a result of this tax bill. If you have got 
anyone in Ohio, in Pennsylvania, or in Texas who got their $4,000, I 
hope you will call us, because I am looking for the first person.
  Mr. Speaker, I yield 5 minutes to the gentleman from Illinois (Mr. 
Danny K. Davis), a distinguished member of our committee.
  Mr. DANNY K. DAVIS of Illinois. Mr. Speaker, I thank my colleague.
  Mr. Speaker, only 39 percent of Americans have enough savings to 
cover an emergency costing $1,000. The median savings of workers 
earning the median income of $54,000 in my congressional district is 
only around $2,000. The median savings of women is $2,000. The median 
savings of African Americans is $1,000, and of Latinos, it is $1,500. 
Yet this bill bestows tremendous tax benefits on the wealthy who can 
stockpile tens of thousands of dollars in multiple savings accounts, 
leaving the working class out in the cold.
  When hard work in one or two jobs isn't enough for most Americans to 
escape poverty because wages have stagnated for decades and because 
recovery from the Great Recession is concentrated in the small 
percentage of Americans who invest in the stock market, when we know 
that low- and moderate-income families have a harder time saving for 
college because they have less extra cash available to put away in a 
savings account, the Republican solution embraces the privileged and 
fails the working families.
  What is absent from this bill is telling.
  The 529 plan does not cover childcare for apprentices, one of the 
number one costs they face with training. This bill throws crumbs to 
apprentices by allowing 529 plans to cover minor training expenses like 
books and supplies.
  Given that employers pay for the coursework of apprentices, the 
remaining education costs are relatively small. That is why apprentice 
advocates asked for and why the original bill included coverage for 
childcare, yet childcare is not covered in this bill.
  What also is absent is the Jenkins-Kind provision to help middle-
class families save for college by allowing employers to match up to 
$600 a year in 529 contributions, which could help families who can't 
afford to put much aside for college or increase their savings.
  I cannot understand how, when our citizens are struggling under 
crushing student loan debt, the Republican solution is to allow the 
elite, with impressive 529 plans, to pay off their student debt while 
leaving the working class out in the cold.
  Absent is a true investment in helping working and middle-class 
families pay for college. Rather than helping working families, this 
Republican bill additionally, ideologically attacks the reproductive 
freedom of women by unnecessarily defining unborn children as 
beneficiaries of 529s.
  I agree that we should help families cover the cost of needed health 
services to help students learn, such as speech and language services, 
occupational therapy, or physical therapy.

                              {time}  1500

  Yet, rather than requiring that insurance companies cover these 
health services that help students learn, the Republican solution is to 
allow the privileged, with thousands of dollars in savings, to pay for 
these costs, while working and middle-class families must forego the 
services for lack of funds.
  When 67 percent of Americans say that they will outlive their 
retirement savings, the Republican solution to helping families pay for 
expenses associated with a new child or adoption is to undermine these 
families' retirement security. The Republican tax approach gives 
corporations and millionaires tens of thousands of dollars directly, 
but working Americans must take money from their retirement.
  Government should strengthen the economic security of working and 
middle-class Americans whose wages have stagnated, not the very 
wealthiest. This bill fails that charge.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I yield 3 minutes to the 
gentleman from Ohio (Mr. Wenstrup).
  Mr. WENSTRUP. Mr. Speaker, I stand here today in support of Mr. 
Kelly's bill.
  Our colleague across the aisle just gave us some very sad statistics 
that so many of our fellow Americans have when it comes to savings in 
their lives, so I am surprised that they would want to keep things the 
same.
  You see, tax reform has brought opportunity and hope and a positive 
energy to America. Our national economy is booming. Wages are on the 
rise. Americans are taking home bigger paychecks, and businesses are 
investing more in their employees.
  But how can we help families invest in their future, invest for their 
retirement?

[[Page H9129]]

  The opportunity is now. With wages up, now is the time.
  Today, 40 percent of Americans say they cannot cover an unexpected 
expense of $400. Many Americans are unprepared for upcoming 
retirements, awaiting a Social Security check that may be smaller than 
they ever expected. Others may be unprepared for a medical emergency.
  Sadly, 32 years ago, when I started my business, almost $200,000 in 
debt, I was advised to pay off my student loans, pay off my debt and, 
as I looked down the road, don't count on Social Security to even be 
there.
  We need to use the economic success that we are seeing today to 
alleviate the widespread savings crisis in American communities and in 
American families. The Family Savings Act of 2018, on the floor today 
as part of Tax Reform 2.0, is one opportunity to do just that.
  Millions of Americans would gain access to new savings vehicles: 
Universal Savings Accounts offering withdrawals at any time, in any 
amount, for any purpose; joint small business 401(k) plans; expanded 
529 education accounts to pay for apprenticeships, homeschooling, or 
student loan debt.
  This is an opportunity to break down the barriers that limit 
businesses' ability to offer retirement plans and individuals' ability 
to save is enhanced.
  By eliminating the maximum age limit for IRA contributions and 
exempting individuals with small retirement accounts from making 
mandatory distributions, this legislation encourages workers to save 
and enables them to do so.
  These reforms offer flexibility for families to save, when able, and 
spend, when needed; and they offer options for employers--to help local 
businesses provide retirement plans for their employees. Let's help our 
fellow Americans be on the path to financial security, especially 
during our later years.
  Mr. DOGGETT. Mr. Speaker, I yield 3 minutes to the gentleman from 
Wisconsin (Mr. Kind), who has been a leader on retirement issues and 
was one of the sponsors of the original form of this bill, which has 
changed a good bit, and on other retirement legislation.
  Mr. KIND. Mr. Speaker, I thank my friend from Texas for yielding me 
this time.
  I am an original sponsor of the original bill, which became the basis 
of this bill, the Retirement Enhancement Security Act.
  Unfortunately, today this bill is not that bill. A lot has changed, a 
lot was taken out, and a lot was removed from it because the process is 
broken. We didn't have hearings. We didn't have consultation. We didn't 
have the back-and-forth that is needed to build bipartisan support for 
an important measure such as this.
  We do have a retirement savings in this country. We can be doing more 
to make it easier for individuals and small businesses to offer 
retirement savings plans for their employees.
  I have been proud to work with my friend from Pennsylvania, Mr. 
Kelly, on legislation to try to correct it. Part of the original bill, 
the RESA bill, it has been called, was based on legislation that I have 
offered for years with my friend and colleague from Washington State, 
Mr. Reichert, another Member of the committee.
  In fact, the original RESA bill, when it was up before the Senate 
Finance Committee, passed 26-0. That is how controversial it was. But 
unfortunately, again, this bill does not reflect what was done there.
  An important provision that would have provided PBGC premium pension 
relief from rural electric co-ops, from nonprofits, like the Boys and 
Girls Club of America, or the Jewish Federation of North America, the 
Christian Schools International, was mysteriously stripped from this 
legislation with very little explanation. That is a problem that we 
could easily fix right now, as just one example.
  Another problem we have is that the pay-for that was recognized and 
identified in a bipartisan manner, the so-called stretch IRAs that we 
could be shutting down to help pay for this legislation, was also 
stripped.
  Now, I get the fact that fiscal responsibility is out the door with 
the majority party. They don't believe in paying for things. But when 
we come up with a bipartisan pay-for, after vetting it and getting 
feedback from the various stakeholders, and they still can't accept it, 
that tells me that, not only don't they care about fiscal 
responsibility but they are hostile to fiscal responsibility.

  This is one of three bills now that the Ways and Means Committee is 
bringing to the floor, with no opportunity for amendments or other 
Members to contribute to help form this legislation. They are here 
before us in what is called a closed rule; no amendment opportunity, 
and none of the bills will be paid for which, according to the Joint 
Committee on Taxation, will, when these three bills are implemented, 
cost our Nation over $3 trillion in new debt; $3 trillion. And this 
comes on the heels of the tax cut 1.0 that passed late last year which, 
again, wasn't paid for, which will add $2.3 trillion to other national 
debt.
  Now, I don't know about you, but you give me the opportunity to write 
$5 trillion worth of hot checks, and I will give you the illusion of 
wealth and growth in this country.
  But there is a day of reckoning that will come from all this because 
this is happening at the wrong time. When we have got growth, we have 
got virtually full employment, and you guys can't throw enough fiscal 
stimulus at this economy. You are taking our fiscal tools away from us.
  The SPEAKER pro tempore. The time of the gentleman has expired.
  Mr. DOGGETT. I yield an additional 2 minutes to the gentleman from 
Wisconsin.
  Mr. KIND. You are taking all the fiscal tools away from us, so when 
there is another recession, and there will be, unless somehow we repeal 
the economic cycle in this country, the Federal Reserve will be the 
only institution standing that can actually take corrective action, 
probably with extraordinary measures, which we all hated in 2008 and 
2009.
  But this bill, and the three bills this week that are before us are 
here for three reasons and three reasons only: Because of the election 
calendar, with the midterms coming up in early November, and vulnerable 
Members' names being attached to these bills, so that they can do their 
ads and they can do their press releases back home, knowing that it is 
not going to go anywhere in the Senate.
  Then finally, we are here this week because tax cut 1.0 went over 
like a wet blanket with the American people because they know what that 
was about; where 83 percent of that tax cut is going to large 
corporations and the wealthiest 1 percent of our Nation. The American 
people get that.
  And what did these corporations do with their huge tax windfall? They 
are doing exactly what they said they would do, share buybacks, 
dividend distribution, executive compensation salaries. They are all 
buying private jets because of the additional money that they have for 
their executives right now. Very little has gone into increased wages 
or salary increases, and this is what corporate America said they would 
do, so no one should be surprised by that.
  So I say, let's slow down here. Let's think about the fiscal future 
of our country, more importantly, the fiscal future of our children and 
grandchildren because right now we have 10,000 baby boomers retiring 
every day. When these three bills are fully implemented, all 70 million 
baby boomers will be completely vested in the retirement system, 
drawing on Social Security and Medicare. And we have set those programs 
up for failure with these reckless tax cuts that aren't paid for and 
are going to leave a legacy of debt, which will invariably lead to huge 
cuts to Social Security and Medicare, because, guess what? We don't 
have money anymore to support those programs.
  That is what is going on around here right now. But we still have 
time to correct it because the Senate is not going to take it up.
  Let's vote ``no''. Let's do this the right way.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I share my colleague's 
concerns over the debt. In fact, I started to really become alarmed 
with it under the Obama administration when we went from being $10.6 
trillion in debt to nearly $20 trillion in debt. I just wonder, where 
were you when this was going on? And why was there not any alarm 
sounding then?
  But again, it is just politics masquerading as fiscal discipline.

[[Page H9130]]

  Mr. Speaker, I yield 3 minutes to the gentleman from Kansas (Mr. 
Estes), a good friend of mine.
  Mr. ESTES of Kansas. Mr. Speaker, I rise in support of H.R. 6757, the 
Family Savings Act.
  Since the Tax Cuts and Jobs Act was implemented and signed into law, 
our country has seen historic economic growth and millions of families 
now have more money in their pockets.
  In fact, in Kansas, a middle-class family of four will get to keep 
$2,144 of their hard-earned money of this year. Thanks to the law, 
families from the heartland in Kansas and around the country are better 
off now. But we know there is more to do.
  With historically low unemployment and more and more Americans going 
to work, now is the time to continue growing our economy and to help 
families prepare for the future.
  As my colleagues have mentioned earlier, far too many Americans have 
struggled to save for their key life events such as retirement, an 
emergency, or education. This bill makes savings a reality for these 
Americans.
  As part of the tax cuts reform 2.0, this Family Savings Act will help 
families save for all of these events by expanding access to new and 
existing savings methods.
  To help businesses provide retirement plans for workers, the bill 
allows small businesses to join together to create 401(k) plans more 
affordably. It gives employers more time to put new retirement plans in 
place, and simplifies the rules for participation in employer plans.
  It also includes reforms to help workers participate in retirement 
plans such as: exempting small retirement accounts from mandatory 
payouts; eliminating the age limits on IRA contributions; and allowing 
military reservists to maximize their retirement contributions.
  In addition, the bill allows provisions that help families start 
saving earlier and save more throughout their lives, including creating 
a new Universal Savings Account, a USA account, to offer a flexible 
savings tool that families can use any time that is right for them.

  It expands 529 education accounts by providing families with 
flexibility to use their education savings to pay for apprenticeships, 
homeschooling, and help pay off student loans.
  As the former Kansas State Treasurer, I can attest to the value of 
helping parents save for their children's education.
  And it creates new baby savings, allowing families to access their 
retirement accounts on a penalty-free basis when welcoming a new child 
into the family, whether by birth or adoption.
  All together, these measures will help families in Kansas and around 
our country prepare for retirement and save for education. I urge my 
colleagues to support this bill.
  Mr. DOGGETT. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
California (Ms. Judy Chu), a valued member of our committee.
  Ms. JUDY CHU of California. Mr. Speaker, I rise today in strong 
opposition to H.R. 6757, the Family Savings Act. It is outrageous that, 
after our markup, a provision was snuck into the bill, behind closed 
doors, through a manager's amendment that seeks to further an extreme 
anti-choice agenda and has no place in this tax bill.
  Chairman Brady's manager's amendment, offered behind closed doors in 
the Rules Committee, has added language that would allow parents to 
open 529 college savings accounts for unborn children. The term 
``unborn children'' is defined as a child ``in utero'' at any stage of 
development carried in the womb. This provision is completely 
unnecessary because, under current law, parents are already able to 
open 529 savings plans for future children in their own name, and then 
change the name of the beneficiary after the birth of their child.
  The implications of this insertion, however, is serious. In the 
landmark Supreme Court decision in Roe v. Wade, the Court declared that 
``the word person, as used in the 14th Amendment, does not include the 
unborn.''
  So let me say, there is no ambiguity here. This is a thinly-veiled 
attempt to circumvent the Supreme Court's decision by inserting the 
words ``unborn child'' in, of all places, the Tax Code, so that 
codifies in law a legal concept of the unborn child, therefore, 
establishing the fetus is protected separately from the mother.

                              {time}  1515

  This is the same language that anti-choice advocates tried to insert 
into the GOP tax scam bill 1.0, but where the language was ultimately 
stripped out.
  At that time, a spokesperson for the anti-choice March for Life group 
stated that H.R. 1, the GOP tax scam bill, ``. . . we hope that this is 
the first step in expanding the child tax credit to include unborn 
children as well.''
  This language is, therefore, obviously, an attempt to lay the legal 
groundwork to undermine a woman's constitutional right to an abortion, 
plain and simple. Based on this language alone, women's groups NARAL 
and Planned Parenthood are opposing this bill.
  This is nothing more than a political gimmick conducted in secret in 
order to score political points for Republicans trying to placate their 
extreme base.
  Mr. Speaker, I strongly urge my colleagues to reject this bill and 
vote ``no''.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I yield 3 minutes the 
gentleman from Texas (Mr. Brady), chairman of the Ways and Means 
Committee, the hero of the Tax Cuts and Jobs Act.
  Mr. BRADY of Texas. Mr. Speaker, I rise in support of the Promoting 
Family Savings Act of 2018, and thank Congressman Kelly for leading 
this important bill that helps families save earlier and save more 
throughout their life, something each party should be in support of.
  Far too many have struggled to save for key life events such as for 
retirement, for education, or for unexpected emergencies. In fact, I 
know, back home, almost 40 percent of Americans say they wouldn't even 
be able to carry and cover a $400 emergency expense.
  The Promoting Family Savings Act will help more middle-class 
Americans and younger workers save for key life events by expanding 
access to new and existing savings vehicles.
  For example, the bill includes expanded education savings accounts, 
529 accounts, as we use in our family, to give families the flexibility 
to use their education savings to pay for apprenticeship fees for those 
trade schools; to cover the costs of homeschooling; and to help pay 
off, for the first time, student debt with their own savings.
  It also includes new universal savings accounts, called USAs, which 
offer fully flexible savings tools that families can use any time for 
what is right for them. We think this is very important to millennials 
in entering the savings culture.
  This bill will also help families by allowing them to access their 
own retirement accounts on a penalty-free basis to use when welcoming a 
new child in the family, whether by birth or adoption, allowing them to 
replenish those retirement accounts in the future.
  It seems to me that we have heard two complaints today. One is that 
this small provision adds to the debt. But I ask you: Where were the 
Democrats when they and President Obama doubled America's national 
debt?
  They added $2 trillion to the debt in 1 year, but that was adding 
debt when they were spending your money.
  But now under tax reform, when we allow families and small businesses 
to keep more of what they earn, all of a sudden, they are concerned 
about the national debt.
  They are really not worried about tax cuts for the wealthy. They are 
worried about tax cuts for middle-class Americans, because if your 
earnings and your dreams come first, Democrats' dreams and Washington's 
dreams come second.
  So this is a small investment to help families, small businesses, and 
younger workers save. But it does more than that.
  The gentlewoman from California is confused. This bill is extremely 
family friendly, and one of the ways we do it is the education savings 
accounts, which we use for our two boys, is expanded.
  This amendment simply makes clear that families can set up a 529 
account and designate an unborn child as a beneficiary. So the moment 
you know ``we are pregnant,'' you can begin saving.
  The SPEAKER pro tempore (Mr. Byrne). The time of the gentleman has 
expired.

[[Page H9131]]

  

  Mr. KELLY of Pennsylvania. Mr. Speaker, I yield an additional 1 
minute to the gentleman.
  Mr. BRADY of Texas. Mr. Speaker, you would think it would be a 
bipartisan thing to start saving early. We think starting to save early 
is a good thing. This amendment simplifies it for families.
  Right now, when you learn those magic words, ``We are pregnant,'' and 
you want to begin saving, we actually force families to set up an 
account for someone else and then later they transfer it to the child 
after birth. All this does is eliminate that extra step, reduces the 
paperwork, and makes savings for family and that new addition, whether 
it is by birth or by adoption, in our case, it makes it easier to do.
  The savings bill by Mr. Kelly for the first time allows families who 
welcome that new child to access their retirement if there are extra 
medical costs, or if your child has special needs and needs new 
equipment, or if you want to simply stay home sometime with your 
family. Maybe the business you work for can't afford to pay you. For 
the first time, millions of American families will have a Tax Code that 
works for their young family, not against them.
  Mr. Speaker, you would think that would be supported by both parties. 
I urge Members of Congress to set aside this silly partisanship and 
join together to help families save more.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I yield myself such time as I 
may consume to engage in a colloquy with the chairman.
  Mr. Speaker, one topic that has been discussed in the context of the 
savings and retirement bill is the level of premiums paid to the 
Pension Benefit Guaranty Corporation, the PBGC, by rural electric co-
ops and by charitable organizations.
  I know the Ways and Means Committee included a study that was 
intended to provide information relevant to the proper level of PBGC 
premiums. That study was removed by the manager's amendment.
  Could the chairman provide some insights about how this issue will be 
resolved as we move forward?
  Mr. BRADY of Texas. Will the gentleman yield?
  Mr. KELLY of Pennsylvania. I yield to the gentleman from Texas.
  Mr. BRADY of Texas. Mr. Speaker, I will be glad to provide my 
perspective. The gentleman from Pennsylvania (Mr. Kelly) is correct. 
The study was removed.
  The question of PBGC premium levels is not directly within the 
jurisdiction of the Ways and Means Committee. Here, in the House, the 
committee of jurisdiction is the Education and the Workforce Committee.
  I have had numerous discussions with the excellent chairwoman of the 
committee, Dr. Foxx of North Carolina. She knows our interest in 
determining the proper premium levels for these organizations. 
Premiums, as you know, that are too low threaten the ability of the 
PBGC to provide protections for the workers and beneficiaries.
  At the same time, if premiums are set too high, they really impose an 
inappropriate burden on pension plans and the workers who participate 
in them.
  This issue will come up again as we negotiate a final agreement with 
the Senate on the overall retirement and savings package, because many 
Senators, too, are also interested in finding the right level of 
premiums.
  So I would say to the gentleman that I have full confidence that 
Chairwoman Foxx and her colleagues as the committee of jurisdiction 
will be engaged in working on the overall retirement security agreement 
and will work to provide appropriate input in determining the right 
outcome.
  Mr. KELLY of Pennsylvania. Mr. Speaker, I thank the chairman, as 
always, for his insights and his clarity, and I reserve the balance of 
my time.
  Mr. DOGGETT. Mr. Speaker, I have no further speakers, so I will close 
at this time and initially yield myself 5 minutes.
  Mr. Speaker, the Republican tax bill has given us trillions of 
dollars of additional debt, and so, tomorrow, they propose to freeze in 
some additional provisions that will add hundreds of billions of 
additional debt to what they have already incurred.
  They would depart for the elections, carefully timed with tomorrow's 
debate, so that the last thing the voter hears is that the Republicans 
have passed another tax bill.
  Of course, none of its provisions will affect any American for 7 
years. That is what they have to offer us: freeze in some inefficient 
provisions that are not really targeted to ordinary American families 
that have a special provision in there specifically for Donald Trump 
and other real estate magnates, a provision they hid and tucked in the 
conference committee and then put in the final law, one special 
interest provision after another. They want to freeze all of that in 
and offer the American people the mirage of relief in 7 years.
  This bill that they signed into law as their big tax deal will cost 
this generation and future generations a huge amount of money just 
paying the interest on the debt that they have achieved, and having 
done nothing in this Congress to advance retirement security, having 
done nothing in this Congress to encourage more savings by more 
Americans.
  They come here on the eve of our departure for the elections with 
this big family savings account bill. It also proposes to borrow more. 
It has a great new universal savings account in it. The only problem is 
that two-thirds of Americans won't take advantage of this universal 
savings account because it offers them no advantage whatsoever.
  As usual, those Americans have been excluded from the Republican 
version of what the universe of Americans really is.
  The cost of doing this is not only in terms of new debt, but a very 
inefficient approach where you pay, as indicated by the study of a 
similar program, you have $1 lost, $1 cost in this borrowing, and you 
get 1 penny of additional real savings.
  Now, I am amused a little bit to hear my colleagues come and agree 
with me about the challenge that American families face of not having 
$400 to meet an emergency medical expense. How in the world are any of 
those Americans going to benefit in the slightest from this proposal?
  It advantages people who have $100,000 or more with the universal 
savings account. They are not in that category. If they can't afford a 
$400 medical expense, exactly how much savings do you expect them to 
have under this bill? A big zero is what we are talking about.
  It is a big zero in large measure because, despite this great tax 
bill they approved, real wages in America have remained stagnant during 
the Trump administration.
  He has not been able to raise real wages because he continues to 
engage in supporting programs, just like the one before us today, that 
are aimed at those at the top and think somehow the benefits will 
trickle down to everyone else.
  It is those people who will not benefit from today's legislation, who 
are excluded from the great universe that Republicans see. It is those 
people who rely on Social Security and Medicare, which Republicans have 
proposed changes in, in their budget proposals, have discussed a 
variety of ways to trim them, that we can't afford them in their 
current form.
  Well, what, precisely, have Republicans accomplished about Medicare 
in this Congress? Well, they have a rather significant accomplishment 
that I have to note. As a result of their tax bill, they have reduced 
the solvency of the Medicare trust fund by 3 years, 3 years taken right 
off the Medicare trust fund's future as a result of their tax bill--by 
a variety of independent sources that have evaluated the impact.
  Meanwhile, they are using that tax bill and the debt they have 
accumulated with reference to the amount of money that we have for Pell 
grants and other student financial assistance, for Medicaid and the 
role that it plays, and for other vital services saying: We just can't 
afford them because we borrowed these trillions of dollars from abroad, 
and we don't have the resources to meet our other needs.
  With every tax policy that they propose, Republicans seem to insist 
on leaving working families behind. And they have the gall then to turn 
around and tell those same working families: You have to pay for it in 
interest, in cuts to Medicare and Medicaid, and other services.

[[Page H9132]]

  Now, there is another really important point about this, which Mr. 
Kind addressed, because just like the bill we will take up tomorrow, 
just like the bill we are taking up right now, just like this huge 
Republican tax sham, there is much in common. The number one thing in 
common is that not one official in any of the departments in the Trump 
administration had the guts to come over and face our committee and 
answer questions about it.
  They did not bring a single Trump administration official to discuss, 
explain, justify, how any of this conforms with all his ridiculous 
campaign promises. There was none of that on any of these bills.
  They kept their bills in secret until the last minute after having no 
public hearings, inviting no businesses, no academic experts from 
around the country. They plopped these bills out and rushed them 
through just as quickly as possible, so there will be as little 
consideration as possible.
  Then they talk about the desire for bipartisan comity after doing 
this kind of thing. Well, there are many bipartisan ideas out there 
that could have been considered. Mr. Kind's proposal is designed to 
help poor people, working people save for college or retirement, and 
give them some incentive for that. That is an idea that could have been 
considered.

                              {time}  1530

  Mr. Neal, the ranking member of our committee, has advanced some 
other important ideas concerning savings to expand the savers credit 
that would help many of these working families get the savings that 
they need to prepare for their golden years.
  Mr. Larson, another member of our committee, has worked on cutting 
taxes for many people under Social Security with modest incomes and 
seeing that those who have been more successful pay the same rate on 
all their income that those who are not at the top of the economic 
ladder pay on theirs. He has a plan to ensure that Social Security will 
be solvent through the end of this century.
  Those are the kind of creative proposals that we have advanced, but 
we can't get a hearing on them. We can't get an opportunity under 
today's bills or any of these others to offer an amendment to add them. 
The only way we are going to have an opportunity to address those 
creative proposals and do something for a universe that we define as 
including all Americans, not just those perched up comfortably on the 
top of the economic ladder, the only way we will do that is with a new 
Congress of caring, concerned people who are willing to listen, 
regardless of whether they agree to divergent views, and try to come up 
with a truly American answer to resolve this retirement security 
problem.
  I believe that those Americans who are working out there today, 
trying to make ends meet, who won't benefit from this bill are worried 
about the tax breaks that have gone to those up at the top, how they 
will threaten all that they have worked and paid for in their future, 
and the callous indifference it shows to their children and their 
grandchildren, who will be saddled with this Republican debt for 
decades.
  The late Texas Senator Ralph Yarborough, a distinguished servant of 
our State, talked about putting the jam on the lower shelf so that 
everybody could reach it. Well, this bill puts the jam at the top for 
the one-third of Americans up there at the top who might use some 
portion of this bill, but it leaves out the two-thirds who can't reach 
quite that high.
  This bill is not what America needs to achieve retirement savings. In 
so many ways, Republicans are ignoring the needs of working families.
  They are ignoring prescription price gouging, doing nothing about it, 
and they are ignoring our healthcare needs. In fact, their tax bill 
actually weakens, significantly, access to healthcare and jeopardizes 
Americans with higher premiums as a result of a healthcare provision 
that they snuck into their tax bill.
  They show no concern for a living wage for Americans. This bill is 
just part of that same narrow-mindedness and that same refusal to look 
at a universe that applies to all Americans. They are leaving families 
that are struggling to make ends meet behind. They are certainly not 
letting them reach the jam that they deserve to be able to access, as 
Senator Yarborough talked about.
  Let's reject this bill and look forward to a day, a very hopeful day, 
for Americans in which all Americans can have their say and we can get 
a Congress that will resist the injustices of the Trump administration 
and will reach out to support a better future for our country.
  Mr. Speaker, I urge rejection of this bill, and I yield back the 
balance of my time
  Mr. KELLY of Pennsylvania. Mr. Speaker, I yield myself the balance of 
my time.
  I include in the Record a letter from AARP in strong support of H.R. 
6757.


                                                        AARP,

                                               September 27, 2018.
     Hon. Paul D. Ryan,
     House of Representatives,
     Washington, DC.
     Hon. Nancy Pelosi,
     House of Representatives,
     Washington, DC.
       Dear Speaker Ryan and Leader Pelosi: AARP writes to support 
     H.R. 6757, the Family Savings Act of 2018 that will promote a 
     more secure retirement. AARP, with its nearly 38 million 
     members in all 50 States, the District of Columbia, and the 
     U.S. territories, is a nonpartisan, nonprofit, nationwide 
     organization that helps empower people to choose how they 
     live as they age, strengthens communities, and fights for the 
     issues that matter most to families, such as healthcare, 
     employment and income security, retirement planning, 
     affordable utilities and protection from financial abuse.
       Notably, the Family Savings Act seeks to encourage more 
     employers, especially small employers, to provide retirement 
     savings opportunities for American families, a goal AARP 
     shares. Small employers have lagged in offering retirement 
     plans to their employees. The U.S. private employer-based 
     retirement system, which supplements Social Security, has not 
     significantly expanded coverage for decades. Only half of all 
     employers, primarily large employers, offer retirement plans 
     to their workers, and only half of all employees are saving 
     for retirement. In recent years, new industry practices and 
     technology have made the savings process simpler. AARP 
     encourages Congress to adopt tested ideas to make 
     supplemental savings easy and affordable for both employers 
     and employees.
       The Family Savings Act includes a promising retirement 
     savings initiative, known as a multiple employer or pooled 
     provider plan--a single plan operated by a group provider who 
     will act as a fiduciary, making it easier for small employers 
     to offer a plan and providing workers with prudently selected 
     retirement investments. AARP is hopeful that qualified firms 
     will be willing to create pooled arrangements that enroll and 
     assist interested employers and employees. Small employers 
     are not retirement experts and need an impartial advisor to 
     take responsibility for automatic payroll contributions and 
     negotiating with and monitoring investment firms.
       In addition, the bill contains several other helpful 
     retirement savings improvements for the military, graduate 
     students and older investors. We also are pleased that the 
     bill preserves ready access to paper documentation of 
     important retirement plan documents.
       We appreciate your efforts to encourage improvements in our 
     retirement system, and look forward to working with Committee 
     members on further bill refinements and enhancements as the 
     bill moves forward to conference. If you have any questions 
     or need additional information, please feel free to contact 
     me.
           Sincerely,

                                             Nancy A. LeaMond,

                                      Executive Vice President and
                            Chief Advocacy and Engagement Officer.

  Mr. KELLY of Pennsylvania. Mr. Speaker, it is interesting to be here 
in the people's House on the floor hearing two differing views of 
America. I really appreciate about putting the jam on the lower shelf. 
We have actually put it on the table with the lid off so that every 
single American has benefited.
  I know that sometimes we look at things, and people are entitled to 
their own opinion, but what they are not entitled to are their own 
facts. The fact is that, under the Tax Cuts and Jobs Act, every single 
American has benefited.
  This is not just about Democrats and Republicans; this is about 
Americans. I am hoping that Americans are watching what is going on 
here right now, where the game plan is always: If we can divide them, 
we can win. If we don't have any facts, let's just come up with 
anything and throw it out there and think that maybe the way we use the 
Gruber effect in the healthcare plan, we are going to rely on Americans 
not to really look beyond what is going on.
  Well, I will tell you what. In every segment of our society right 
now, we are seeing the lowest unemployment in

[[Page H9133]]

history. It doesn't matter if these are hyphenated Americans--I don't 
know why we have to be this way, because I look at people as being red, 
white, and blue Americans, not White, not Black, not tan, not yellow. I 
am talking about red, white, and blue Americans, the same people who 
provide every single penny to run this marvelous government of ours.
  And now what we are proposing today is to allow these same 
hardworking people the opportunity not to have to rely on a government 
program, but to be able to rely on their own hard-earned savings. What 
an incredible, unusual idea to come out of this House.
  Look, we know that it is absolutely crucial that, as more and more 
Americans enter their golden years, they have the security and peace of 
mind to enjoy those years and not have to worry about whether they have 
saved enough money. We should be doing everything we can to help them 
save more of their hard-earned money--it is their own money, by the 
way--for themselves and for their families. H.R. 6757 does that by 
giving every single American the tools that he or she needs to help 
them save for their future and to save for their retirement.
  I have heard today the tax sham. I have heard today about growing 
deficits. I have heard today about the rich, the elite, the people who 
have private boats, and the people who have jets. But what I haven't 
heard today is how this incredible piece of legislation, the Tax Cuts 
and Jobs Act, has increased and how our economy has taken off.
  Now, you can say anything you want, and I understand why you are 
upset. Not one of you could vote for this. So if you couldn't vote for 
it and you couldn't be part of the team that won, what you have to be 
now is the team that says: Do you know what? We could have done it 
better.
  My question is: Where the heck were you in the previous 
administration? Where were you in all those years when the debt grew 
from $10 trillion to $20 trillion?
  Now, all of a sudden, the light comes on: Oh, my God, the debt is 
increasing. It is these doggone Republicans. Do you know what they are 
trying to do? They want hardworking American taxpayers to be able to 
keep more of their own money. That is just not the way Washington 
works.
  I thank God every day that I didn't start off as a local politician, 
then move into a county position, then move into a State position, and 
then wander into D.C. using that same philosophy that we are going to 
put this on the backs of our taxpayers. We never tell these people that 
the hand they feel in their back pocket is the government taking their 
wallet out. Then we decry this fact that: Oh, my goodness, how could we 
ignore the debt?
  Thanks for waking up. Where were you when it was $10 trillion? Why 
did you let it get to $20 trillion before the bells went off?
  Look, there is so much in this bill that just makes sense. This bill 
was not crafted for Democrats. It wasn't crafted for Republicans. It 
was crafted for Americans, hardworking Americans, who put all their 
life into a job, who look forward to retirement. We are giving them 
that opportunity not to rely on some government program that may or may 
not be there when they reach retirement.
  We are telling them: Do you know what? You get to keep more of your 
own money now. You get to put it away in a lot of pretax opportunities. 
You get to know that you can draw down on some of that money without 
being heavily taxed for needing it.
  And while we decry all these inequities, and when we continue to 
divide Americans and say, ``It is always about the rich; it is always 
about the elite; it is all about those who have more than you do,'' 
that is not what it is about. It is about helping every American get to 
retirement.
  Good Lord, how did we get to this position? How did we get to this 
point in America's history that we will pick and choose and we will 
decry anybody who has been successful and always label them as the 
rich, the elite, these horrible, horrible people who have done so much 
with their life. They just don't deserve that.
  Well, do you know what? This is America. There are more stories in 
this country and throughout our history of people who started with 
absolutely nothing but an opportunity, an equal opportunity, not 
guaranteed an equal outcome, but guaranteed an equal opportunity.
  What we are doing today is guaranteeing for every hardworking 
American out there that they can put more of their own hard-earned 
money into a retirement plan that serves them.
  Now, every time we come on this floor, I hear this: divide, divide, 
divide. We can't possibly be the America that 1.4 million of our fellow 
citizens died to protect. No, no, no. This is not about America's 
future. This is about midterm elections. We are more worried about 
getting reelected than changing the direction of this country.

  I would ask my colleagues on the other side, look, I know you are 
sorry you didn't vote for the Tax Cuts and Jobs Act. That is why you 
throw it down all the time and say this is horrible. What did happen is 
that we are giving you another chance to hop on this train.
  I have only been here 8 years, but I will tell you what. I have heard 
enough in 8 years, coming from the private sector where you have to 
make it on your own every single day. You have to make payroll. You 
have to put food on the table and a roof over the heads of your 
children.
  I don't want a government program that does that for me. I want a 
government program that allows me to save my own money, take less of my 
hard-earned money and allow me to save for my wife, for my kids, for my 
grandchildren, and for my great-grandchildren.
  That is what this is all about today, Mr. Speaker. It is plain and 
simple.
  One group thinks that the whole idea of government is to make each 
and every citizen rely on them and depend on them for their very 
existence. We are offering a chance for every single American--I don't 
care where they are from, I don't care the color of their skin, the 
shape of their eyes, or how they vote. What I do care about is that 
they can go into their retirement knowing that their hard-earned money 
over the years is going to be accessible to them.
  That is what this is all about. I am hoping America is watching.
  I will go back to what I said in the beginning. I remember very 
clearly my mom and my dad sitting there and saying: The one thing we 
pray for is that we are never a burden for you and your brothers and 
your sisters.
  And I will repeat what I said today. I could not believe that the 
people who raised me, who fed me, who clothed me, who gave me a future, 
thought that somehow they would ever be a burden to me, my brothers, or 
my sisters. The one thing I know that they were sure of: They could 
save on their own, and they could get ready for their future and for 
their retirement years.
  That is all we are trying to do today. We are trying to make sure 
that every single hardworking American gets to keep more of his or her 
money for their own retirement without the government taking advantage 
of them.
  Mr. Speaker, I have no further speakers, but I do still have the 
passion to bring this forward, and I have the passion and I have the 
belief that, if you can get beyond politics and talk about people, that 
you can come to a conclusion that this is a solid bill that helps our 
fellow Americans go into their retirement.
  I know that is in your heart. I know you can't speak it sometimes 
because we are so polarized. Isn't that a shame?
  But I will say this. Today we have the opportunity, and what you can 
show it on--there will be a big screen up there. It will have 
everybody's name. And you can put a green ``yes'' on there, which says: 
I am voting for America's future. I am voting for America's retirees. I 
am voting to make people have peace of mind. Or you can put a red up 
there and say: Do you know what? I would have voted for it, but it 
wasn't our bill. And if it is not my bill, if it is not my party's 
bill, I can't vote for that because there is an election coming up and 
we have got to polarize this.
  Mr. Speaker, I know I am out of time, but I am not out of breath, and 
I will tell you what, I am sure as hell not out of passion. I know what 
this country means for everybody, and we are making it possible for 
them every day in every way.

[[Page H9134]]

  Mr. Speaker, I yield back the balance of my time
  The SPEAKER pro tempore. All time for debate has expired.
  Pursuant to House Resolution 1084, the previous question is ordered 
on the bill, as amended.
  The question is on the engrossment and third reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. THOMPSON of California. Mr. Speaker, on that I demand the yeas 
and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, this 15-
minute vote on passage of the bill will be followed by a 5-minute vote 
on passage of H.R. 6756.
  The vote was taken by electronic device, and there were--yeas 240, 
nays 177, not voting 11, as follows:

                             [Roll No. 411]

                               YEAS--240

     Abraham
     Aderholt
     Allen
     Amash
     Amodei
     Arrington
     Babin
     Bacon
     Balderson
     Banks (IN)
     Barletta
     Barr
     Barton
     Bergman
     Biggs
     Bilirakis
     Bishop (GA)
     Bishop (MI)
     Bishop (UT)
     Black
     Blum
     Bost
     Brady (TX)
     Brat
     Brooks (AL)
     Brooks (IN)
     Buchanan
     Buck
     Bucshon
     Budd
     Burgess
     Byrne
     Calvert
     Carter (GA)
     Carter (TX)
     Chabot
     Cheney
     Cloud
     Coffman
     Cole
     Collins (GA)
     Collins (NY)
     Comer
     Comstock
     Conaway
     Cook
     Correa
     Costello (PA)
     Cramer
     Crawford
     Cuellar
     Culberson
     Curbelo (FL)
     Curtis
     Davidson
     Davis, Rodney
     Denham
     DesJarlais
     Diaz-Balart
     Donovan
     Duffy
     Duncan (SC)
     Duncan (TN)
     Dunn
     Emmer
     Estes (KS)
     Faso
     Ferguson
     Fitzpatrick
     Fleischmann
     Flores
     Fortenberry
     Foxx
     Frelinghuysen
     Gaetz
     Gallagher
     Garrett
     Gianforte
     Gibbs
     Gohmert
     Goodlatte
     Gosar
     Gottheimer
     Gowdy
     Granger
     Graves (GA)
     Graves (LA)
     Graves (MO)
     Griffith
     Grothman
     Guthrie
     Handel
     Harris
     Hartzler
     Hensarling
     Herrera Beutler
     Hice, Jody B.
     Higgins (LA)
     Hill
     Holding
     Hollingsworth
     Hudson
     Huizenga
     Hultgren
     Hunter
     Hurd
     Issa
     Jenkins (KS)
     Jenkins (WV)
     Johnson (LA)
     Johnson (OH)
     Johnson, Sam
     Jordan
     Joyce (OH)
     Katko
     Kelly (MS)
     Kelly (PA)
     King (IA)
     King (NY)
     Kinzinger
     Knight
     Kustoff (TN)
     Labrador
     LaHood
     LaMalfa
     Lamb
     Lamborn
     Lance
     Latta
     Lesko
     Lewis (MN)
     Lipinski
     LoBiondo
     Long
     Loudermilk
     Love
     Lucas
     Luetkemeyer
     MacArthur
     Marchant
     Marino
     Marshall
     Massie
     Mast
     McCarthy
     McCaul
     McClintock
     McHenry
     McKinley
     McMorris Rodgers
     McSally
     Meadows
     Messer
     Mitchell
     Moolenaar
     Mooney (WV)
     Mullin
     Murphy (FL)
     Noem
     Norman
     Nunes
     Olson
     Palazzo
     Palmer
     Paulsen
     Pearce
     Perry
     Peterson
     Pittenger
     Poe (TX)
     Poliquin
     Polis
     Posey
     Ratcliffe
     Reed
     Reichert
     Renacci
     Rice (SC)
     Roby
     Roe (TN)
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Rokita
     Rooney, Francis
     Ros-Lehtinen
     Roskam
     Ross
     Rothfus
     Rouzer
     Royce (CA)
     Russell
     Rutherford
     Sanford
     Scalise
     Schweikert
     Scott, Austin
     Sensenbrenner
     Sessions
     Shimkus
     Shuster
     Simpson
     Sinema
     Smith (MO)
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smucker
     Stefanik
     Stewart
     Stivers
     Taylor
     Tenney
     Thompson (PA)
     Thornberry
     Tipton
     Trott
     Turner
     Upton
     Valadao
     Wagner
     Walberg
     Walden
     Walker
     Walorski
     Walters, Mimi
     Weber (TX)
     Webster (FL)
     Wenstrup
     Westerman
     Williams
     Wilson (SC)
     Wittman
     Womack
     Woodall
     Yoder
     Yoho
     Young (AK)
     Young (IA)
     Zeldin

                               NAYS--177

     Adams
     Aguilar
     Barragan
     Bass
     Beatty
     Bera
     Beyer
     Blumenauer
     Blunt Rochester
     Bonamici
     Boyle, Brendan F.
     Brady (PA)
     Brown (MD)
     Brownley (CA)
     Bustos
     Butterfield
     Capuano
     Carbajal
     Cardenas
     Carson (IN)
     Cartwright
     Castor (FL)
     Castro (TX)
     Chu, Judy
     Cicilline
     Clark (MA)
     Clarke (NY)
     Clay
     Cleaver
     Clyburn
     Cohen
     Connolly
     Cooper
     Costa
     Courtney
     Crist
     Crowley
     Cummings
     Davis (CA)
     Davis, Danny
     DeFazio
     DeGette
     Delaney
     DeLauro
     DelBene
     Demings
     DeSaulnier
     Deutch
     Dingell
     Doggett
     Doyle, Michael F.
     Engel
     Espaillat
     Esty (CT)
     Evans
     Foster
     Frankel (FL)
     Fudge
     Gabbard
     Gallego
     Garamendi
     Gomez
     Gonzalez (TX)
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hanabusa
     Hastings
     Heck
     Higgins (NY)
     Himes
     Hoyer
     Huffman
     Jackson Lee
     Jayapal
     Jeffries
     Johnson (GA)
     Johnson, E. B.
     Kaptur
     Keating
     Kelly (IL)
     Kennedy
     Khanna
     Kihuen
     Kildee
     Kilmer
     Kind
     Krishnamoorthi
     Kuster (NH)
     Langevin
     Larsen (WA)
     Larson (CT)
     Lawrence
     Lawson (FL)
     Lee
     Levin
     Lewis (GA)
     Lieu, Ted
     Loebsack
     Lofgren
     Lowenthal
     Lowey
     Lujan, Ben Ray
     Lynch
     Maloney, Carolyn B.
     Maloney, Sean
     Matsui
     McCollum
     McEachin
     McGovern
     McNerney
     Meeks
     Meng
     Moore
     Moulton
     Nadler
     Napolitano
     Neal
     Norcross
     O'Halleran
     O'Rourke
     Pallone
     Panetta
     Pascrell
     Payne
     Pelosi
     Perlmutter
     Peters
     Pingree
     Pocan
     Price (NC)
     Quigley
     Raskin
     Rice (NY)
     Richmond
     Rosen
     Roybal-Allard
     Ruiz
     Ruppersberger
     Ryan (OH)
     Sanchez
     Sarbanes
     Schakowsky
     Schiff
     Schneider
     Schrader
     Scott (VA)
     Scott, David
     Serrano
     Sewell (AL)
     Shea-Porter
     Sherman
     Sires
     Smith (WA)
     Soto
     Speier
     Suozzi
     Swalwell (CA)
     Takano
     Thompson (CA)
     Thompson (MS)
     Titus
     Tonko
     Torres
     Tsongas
     Vargas
     Veasey
     Vela
     Velazquez
     Visclosky
     Wasserman Schultz
     Waters, Maxine
     Watson Coleman
     Welch
     Wilson (FL)
     Yarmuth

                             NOT VOTING--11

     Blackburn
     Ellison
     Eshoo
     Harper
     Jones
     Lujan Grisham, M.
     Newhouse
     Nolan
     Rooney, Thomas J.
     Rush
     Walz

                              {time}  1610

  Mr. McEACHIN changed his vote from ``yea'' to ``nay.''
  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________