,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bjce  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #af1 #bjac ,mr4  
,neal introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,ways &       
,means1 & 9 addition to ! ,committee on 
,education & ! ,work=ce1 = a p]iod to be
 subsequ5tly det]m9$ by ! ,speak]1 9 ea*
 case = consid]ation ( su* provisions z 
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to exp& p]sonal   
sav+ & retirem5t sav+s cov]age by enabl+
 employees n cov]$ by qualify+ retirem5t
 plans to save = retirem5t ?r\gh        
automatic ,,ira arrangem5ts1 & = o!r    
purposes4  #a4 ,%ort title2 ref]5ce  7a7
 ,%ort title ,?is ,act may be cit$ z !  
,automatic ,,ira ,act ( #bjac4  7b7     
,am5dm5t ( #aihf ,code ,except z o!rwise
 expressly provid$1 :5ev] 9 ?is ,act an 
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 

provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  #b4 ,employees n cov]$ by       
qualify+ retirem5t plans or arrangem5ts 
entitl$ to p>ticipate 9 automatic ,,ira 
arrangem5ts  7a7 ,9 g5]al ,subp>t ,a (  
"p ,i ( sub*apt] ,d ( *apt] #a 7relat+  
to p5sion1 pr(it-%>+1 /ock bonus plans1 
etc47 is am5d$ by ins]t+ aft] section   
#djh;,a ! foll[+ new section3  #djh;,b4 
,"r to automatic ,,ira arrangem5ts at "w
  7a7 ,requirem5t ,to provide automatic 
,,ira arrangem5t ,ea* cov]$ employ] %all
 make available to ea* qualify+ employee
 ( ! employ] = ! cal5d> ye> an automatic
 ,,ira arrangem5t4  7b7 ,cov]$ employ]  
,= purposes ( ?is section--  7#a7 ,9    
g5]al ,except z o!rwise provid$ 9 ?is   
subsection or subsection 7c77#b71 ! t]m 
cov]$ employ] means1 ) respect to any   
ye>1 an employ] :i* does n ma9ta9 a     
qualify+ plan or arrangem5t describ$ 9  
section #bai7;g77#e7 = ! cal5d> ye>4    
7#b7 ,exclud$ plans ,a qualify+ plan or 
arrangem5t %all n be tak5 into acc\nt = 
purposes ( p>agraph 7#a7 if--  7,a7 !   

plan or arrangem5t is froz5 z ( ! fir/  
day ( ! prec$+ cal5d> ye>1 or  7,b7 9 ! 
case ( a plan or arrangem5t "u :i* !    
only contributions are discretion>y on !
 "p ( ! employ] or o!r plan sponsor1 no 
employ] contribution has be5 made to !  
plan or arrangem5t = ! #b-plan-ye> p]iod
 end+ ) ! la/ plan ye> end+ 9 ! second  
prec$+ cal5d> ye> & x is n reasonable to
 assume t an employ] contribution w be  
made = ! la/ plan ye> end+ 9 ! prec$+   
cal5d> ye>4  7#c7 ,exception = c]ta9    
small & new employ]s  7,a7 ,9 g5]al ,!  
t]m cov]$ employ] does n include an     
employ] = a cal5d> ye> if ! employ]     
ei!r--  7i7 did n employ m ?an #aj      
employees :o receiv$ at lea/ #e1jjj (   
comp5sation 7z def9$ 9 section          
#cdja7;a77 f ! employ] = ! prec$+ cal5d>
 ye>1  7ii7 did n normally employ m ?an 
#aj employees on a typical bus9ess day (
 ! prec$+ cal5d> ye>1 or  7iii7 0 n 9   
exi/5ce at all times dur+ ! cal5d> ye> &
 ! prec$+ cal5d> ye>4  7,b7 ,op]at+     
rules ,9 det]m9+ ! numb] ( employees =  

purposes ( subp>agraph 7,a7--  7i7 rules
 consi/5t ) any rules applicable 9      
det]m9+ ! numb] ( employees = purposes (
 section #djh7p77#b77;,c7 & section     
#dihj;,b7d7 %all apply1  7ii7 all memb]s
 ( ! same family 7)9 ! mean+ ( section  
#cah7;a77#a77 %all be treat$ z #a       
individual1 &  7iii7 any ref]5ce to an  
employ] %all include a ref]5ce to any   
pr$ecessor employ]4  7#d7 ,exception =  
gov]nm5ts & *ur*es ,! t]m cov]$ employ] 
does n include--  7,a7 a gov]nm5t or    
entity describ$ 9 section #dad7;d71 or  
7,b7 a *ur* or a conv5tion or           
association ( *ur*es :i* is exempt f tax
 "u section #eja4  7#e7 ,aggregation    
rule ,all p]sons treat$ z a s+le employ]
 "u subsection 7a7 or 7b7 ( section #eb 
or subsection 7m7 or 7o7 ( section #dad 
%all be treat$ z a s+le employ]4  7c7   
,qualify+ employee ,= purposes ( ?is    
section--  7#a7 ,9 g5]al ,! t]m qualify+
 employee means any employee ( ! employ]
 :o is n an exclud$ employee4  7#b7     
,plan sponsor's employees ,if--  7,a7 an

 employ] ma9ta9s "o or m qualify+ plans 
or arrangem5ts describ$ 9 section       
#bai7;g77#e71 &  7,b7 ! employees ( a   
subsidi>y1 division1 or o!r major       
bus9ess unit are g5]ally n eligible to  
p>ticipate 9 any su* qualify+ plan or   
arrangem5t1  !n1 = purposes ( ?is       
section1 ! employ] %all be treat$ z a   
cov]$ employ] ) respect to su* employees
 7o!r ?an exclud$ employees71 & su*     
employees 7o!r ?an exclud$ employees7   
%all be treat$ z qualify+ employees1 b  
only if !re are #ej or m ineligible     
employees ( su* subsidi>y1 division or  
o!r major bus9ess unit con/itut+ at lea/
 #aj p]c5t ( ! employees ( ! employ]    
7o!r ?an excludable employees74  7#c7   
,exclud$ employees  7,a7 ,9 g5]al ,! t]m
 exclud$ employee means an employee ( ! 
employ] :o is an excludable employee &  
:o is 9 a class or category t ! employ] 
excludes f treatm5t z qualify+          
employees4  7,b7 ,excludable employee ,!
 t]m excludable employee means--  7i7   
any employee describ$ 9 section         

#daj7;b77#c71  7ii7 any employee :o has 
n atta9$ ! age ( #ah be=e ! beg9n+ ( !  
cal5d> ye>1  7iii7 any employee :o has n
 complet$ at lea/ #c mon?s ( s]vice ) ! 
employ]1  7iv7 9 ! case ( an employ] t  
ma9ta9s a qualify+ plan or arrangem5t   
:i* excludes employees :o h n satisfi$ !
 m9imum age & s]vice requirem5ts =      
p>ticipation 9 ! plan1 any employee :o  
has n satisfi$ su* requirem5ts1  7v7 9 !
 case ( an employ] t ma9ta9s a section  
#djc7;b7 annuity contract 7includ+ a    
cu/odial acc\nt or retirem5t income     
acc\nt71 any employee :o is p]mitt$ to  
be exclud$ f any sal>y r$uction         
arrangem5t "u ! contract pursuant to    
section #djc7;b77#ab71  7vi7 9 ! case ( 
an employ] t ma9ta9s an arrangem5t      
describ$ 9 section #djh7p71 any employee
 :o is n requir$ to be eligible to      
p>ticipate 9 ! arrangem5t "u section    
#djh7p77#d71 &  7vii7 9 ! case ( an     
employ] t ma9ta9s a simplifi$ employee  
p5sion describ$ 9 section #djh7k71 any  
employee :o is p]mitt$ to be exclud$ f  

p>ticipation "u section #djh7k77#b74    
7#d7 ,guidance ,! ,secret>y %all issue  
regulations or o!r guidance to c>ry out 
?is subsection1 includ+--  7,a7         
guidel9es = det]m9+ ! classes or        
categories ( employees to be cov]$ by an
 automatic ,,ira arrangem5t1  7,b7 if an
 employ] excludes employees f !         
automatic ,,ira arrangem5t1 guidel9es   
provid+ t ! employ] %all specify !      
classification or categories ( employees
 :o are s exclud$1 &  7,c7 rules to     
prev5t avoidance ( ! requirem5ts ( ?is  
section4  7d7 ,automatic ,,ira          
arrangem5t ,= purposes ( ?is section--  
7#a7 ,9 g5]al ,! t]m automatic ,,ira    
arrangem5t means an arrangem5t ( an     
employ] 7det]m9$ )\t reg>d to :e!r !    
employ] is requir$ to ma9ta9 !          
arrangem5t7--  7,a7 :i* cov]s ea*       
qualify+ employee ( ! cov]$ employ] = ! 
cal5d> ye>1  7,b7 "u :i* a qualify+     
employee--  7i7 may elect--  7,i7 to    
contribute to an individual retirem5t   
plan1 or to pur*ase a qualifi$ retirem5t

 bond on behalf ( ! employee1 by hav+ ! 
employ] deposit payroll d$uction am\nts 
or make o!r p]iodic direct deposits     
7includ+ electronic paym5ts7 to ! plan  
or to be inve/$ 9 retirem5t bonds 7:e!r 
to ! ,secret>y ( ! ,treasury or to a    
designat$ tru/ee or o!r ag5t = t        
purpose71 or  7,,ii7 to h su* paym5ts   
paid to ! employee directly 9 ca%1  7ii7
 is treat$ z hav+ made ! election "u    
clause 7i77,i7 9 ! am\nt specifi$ 9     
p>agraph 7#d7 until ! individual        
specifically elects n to h su*          
contributions or pur*ases made 7or      
specifically elects to h su*            
contributions or pur*ases made at a     
diff]5t p]c5tage or 9 a diff]5t am\nt71 
&  7iii7 may elect to modify ! mann] 9  
:i* su* am\nts are inve/$ = su* ye>1    
7,c7 :i* meets ! adm9i/rative           
requirem5ts ( p>agraph 7#b71 includ+ !  
notice requirem5t ( p>agraph 7#b77;,c71 
&  7,d7 :i* does n *>ge unreasonable    
additional fees solely on ! basis t !   
balance 9 an automatic ,,ira is small4  

7#b7 ,adm9i/rative requirem5ts  7,a7    
,paym5ts ,! requirem5ts ( ?is p>agraph  
are met ) respect to any automatic ,,ira
 arrangem5t if ! employ] makes ! paym5ts
 elect$ or treat$ z elect$ "u p>agraph  
7#a77;,b7--  7i7 on or be=e ! la/ day ( 
! mon? foll[+ ! mon? 9 :i* ! comp5sation
 o!rwise w\ld h be5 payable to !        
employee 9 ca%1 or  7ii7 be=e su* lat]  
deadl9e prescrib$ by ! ,secret>y = mak+ 
su* paym5ts1 b n lat] ?an ! due date = !
 deposit ( tax requir$ to be d$uct$ &   
)held "u *apt] #bd 7relat+ to collection
 ( income tax at s\rce on wages7 = !    
payroll p]iod to :i* su* paym5ts relate4
  7,b7 ,t]m9ation ( employee            
p>ticipation ,subject to a requirem5t = 
reasonable notice1 an employee may elect
 to t]m9ate p>ticipation 9 ! arrangem5t 
at any "t dur+ a cal5d> ye>1 except t if
 an employee s t]m9ates1 ! arrangem5t   
may provide t ! employee may n elect to 
resume p>ticipation until ! beg9n+ ( !  
next cal5d> ye>4  7,c7 ,notice (        
election p]iod ,! requirem5ts ( ?is     

p>agraph %all n be treat$ z met )       
respect to any ye> unless ! employ]     
notifies ea* employee eligible to       
p>ticipate1 )9 a reasonable p]iod ( "t  
be=e ! #cj? day be=e ! beg9n+ ( su* ye> 
7&1 = ! fir/ ye> ! employee is s        
eligible1 ! #cj? day be=e ! fir/ day su*
 employee is s eligible71 (--  7i7 !    
paym5ts t may be elect$ or treat$ z     
elect$ "u p>agraph 7#a77;,b71  7ii7 !   
opportunity to make ! election to       
t]m9ate p>ticipation 9 ! arrangem5t "u  
p>agraph 7#b77;,b71  7iii7 ! opportunity
 to make ! election "u p>agraph         
7#a77;,b77ii7 to h contributions or     
pur*ases made at a diff]5t p]c5tage or 9
 a diff]5t am\nt1 &  7iv7 ! opportunity 
"u p>agraph 7#a77;,b77iii7 to modify !  
mann] 9 :i* su* am\nts are inve/$ = su* 
ye>4  7,d7 ,employ] may p]mit employees 
to *oose ,,ira ,subject to subsection   
7f71 if ! employ] s elects1 ! arrangem5t
 provides t an employee may elect to h  
contributions made to any individual    
retirem5t plan specifi$ by ! employee4  

7,e7 ,employ] may p]mit employees to    
*oose retirem5t bond ,subject to        
subsection 7f71 if ! employ] s elects1 !
 arrangem5t provides t an employee may  
elect to h paym5ts appli$ t[>d ! pur*ase
 ( retirem5t bonds4  7#c7 ,default      
inve/m5ts ,if an employee is treat$ "u  
clause 7ii7 ( p>agraph 7#a77;,b7 z hav+ 
made an election to p>ticipate 9 an     
automatic ,,ira arrangem5t--  7,a7 !    
employee %all be deem$ to h made an     
election to make contributions & paym5ts
 9 ! am\nt det]m9$ "u su* clause1  7,b7 
su* contributions %all--  7i7 if !      
employ] has made an election "u         
subsection 7f77#b71 be transf]r$ to an  
individual retirem5t plan ( ! designat$ 
tru/ee or issu] b only if !             
contributions are inve/$ z provid$ 9    
p>agraph 7#e71 or  7ii7 be appli$ t[>d !
 pur*ase ( a retirem5t bond4  7#d7      
,am\nt ( contributions & paym5ts  7,a7  
,9 g5]al ,! am\nt specifi$ 9 ?is        
p>agraph is--  7i7 #c p]c5t (           
comp5sation1 or  7ii7 su* o!r p]c5tage (

 comp5sation z is specifi$ 9 regulations
 prescrib$ by ! ,secret>y :i* is n less 
?an #b p]c5t or m ?an #f p]c5t4  7,b7   
,au?ority to provide = p]iodic increases
 ,9 ! case ( qualify+ employees "u an   
automatic ,,ira arrangem5t = #b or m    
consecutive ye>s1 ! ,secret>y may by    
regulation provide = p]iodic 7n m       
frequ5t ?an annual7 increases 9 !       
p]c5tage ( comp5sation an employee is   
deem$ to h elect$ "u subp>agraph 7,a74  
,! consid]ations ! ,secret>y %all take  
into acc\nt 9 issu+ any regulations "u  
?is subp>agraph & subp>agraph 7,a7 %all 
include ! pot5tial effects on l[]-income
 employees z well z on adequacy ( sav+s4
  7,c7 ,p]mitt$ additional proc$ures to 
limit contributions ,an employ]--  7i7  
%all h no responsibility = any cal5d>   
ye> = det]m9+ :e!r1 or ensur+ t1 !      
contributions ) respect to any employee 
d n exce$ ! d$uctible am\nt 9 effect =  
taxable ye>s beg9n+ 9 ! cal5d> ye> "u   
section #bai7;b77#e7 7det]m9$ )\t reg>d 
to subp>agraph 7,b7 !re(71 &  7ii7 %all 

n be treat$ z fail+ to satisfy !        
requirem5ts ( ?is section or any o!r    
provision ( ?is title m]ely because !   
employ] *ooses to limit ! contributions 
"u ?is subsection on behalf ( a qualify+
 employee = any cal5d> ye> 9 a mann]    
reasonably design$ to avoid exce$+ su*  
d$uctible am\nt4  7#e7 ,requir$         
inve/m5ts  7,a7 ,9 g5]al ,am\nts        
contribut$ "u p>agraph 7#c77;,b77i7 %all
 be inve/$ only 9 ! class ( assets or   
funds describ$ 9 subp>agraph 7,b7 unless
 ! employ] elects a class ( assets or   
funds describ$ 9 subp>agraph 7,c71 7,d71
 7,e71 or 7,f74  7,b7 ,t>get            
date_/lifecycle option ,! class ( assets
 or funds describ$ 9 ?is subp>agraph is 
! class ( assets or funds t con/itutes a
 qualifi$ default inve/m5t alt]native "u
 ,dep>tm5t ( ,labor regulation section  
#beej4djd;c-#e7;e77#d77;i74  7,c7       
,pr9cipal pres]vation ,! class ( assets 
or funds describ$ 9 ?is subp>agraph is !
 class ( assets or funds t is design$ to
 protect ! pr9cipal ( ! individual on an

 ongo+ basis1 includ+ passbook sav+s1   
c]tificates ( deposit1 insurance        
contracts1 mutual funds1 ,unit$ ,/ates  
sav+s bonds 7:i* may be index$ =        
inflation71 & simil> assets specifi$ 9  
regulations4  7,d7 ,balanc$ option ,!   
class ( assets or funds describ$ 9 ?is  
subp>agraph is ! class ( assets or funds
 t con/itutes a qualifi$ default        
inve/m5t alt]native "u ,dep>tm5t (      
,labor regulation section               
#beej4djd;c-#e7;e77#d77;ii74  7,e7      
,gu>ante$ lifetime income option or     
equival5t ,! class ( assets or funds    
describ$ 9 ?is subp>agraph is ! class ( 
assets or funds t is design$ to provide 
an employee ) ! "r to elect to receive  
di/ributions z a def9$ level ( income   
annually 7or m frequ5tly7 = at lea/ !   
rema9d] ( ! life ( ! employee or ! jo9t 
lives ( ! employee & ! employee's       
designat$ b5efici>y4 ,no lat] ?an #ab   
mon?s aft] ! date ( enactm5t ( ?is ,act1
 ! ,secret>y ( ,labor & ! ,secret>y %all
 issue guidance def9+ a gu>ante$        

lifetime income or equival5t4  7,f7 ,o!r
 ,any o!r class ( assets or funds       
det]m9$ by ! ,secret>y to be a qualifi$ 
inve/m5t = purposes ( ?is section4  7#f7
 ,coord9ation ) )hold+ ,! ,secret>y %all
 modify ! )hold+ exemption c]tificate "u
 section #cdjb7;f7 s t1 9 ! case ( any  
qualify+ employee cov]$ "u an automatic 
,,ira arrangem5t1 any notice & election 
requirem5ts ) respect to ! arrangem5t   
may be met ?r\gh ! use ( an atta*m5t to 
su* c]tificate or o!r modifications ( ! 
)hold+ exemption proc$ures4  7#g7       
,treatm5t z ,,ira ,a qualify+ employee =
 :om an automatic ,,ira is e/abli%$ "u  
p>agraph 7#a7 may elect1 at su* "t & 9  
su* mann] & =m z ! ,secret>y may        
prescribe1 :e!r to treat ! individual   
retirem5t plan z describ$1 or n         
describ$1 9 section #djh;,a4 ,if no su* 
election is made1 ! plan %all be treat$ 
z describ$ 9 section #djh;,a & %all meet
 ! requirem5ts ( section #djh;,a4  7#h7 
,employ]'s ,option to ,obta9            
,affirmative ,elections f ,employees    

,in/ead ( ,automatic ,enrollm5t ,z an   
alt]native to automatic enrollm5t1 an   
employ] may *oose to comply ) subsection
 7d77#a77;,b77ii7 by notify+ employees t
 ! employ] wi%es to obta9 f ea* qualify+
 employee an affirmative election ei!r  
to contribute or n to contribute to an  
automatic ,,ira1 provid$ t any qualify+ 
employee :o fails to make su* an        
election is treat$ 9 ! mann] provid$ "u 
subsection 7d77#a77;,b77ii74  7e7       
,automatic ,,ira contributions &        
retirem5t bond pur*ases treat$ l o!r    
contributions to individual retirem5t   
plans  7#a7 ,tax treatm5t unaffect$ ,!  
fact t a contribution to an individual  
retirem5t plan or pur*ase ( a retirem5t 
bond is made on behalf ( an employee "u 
an automatic ,,ira arrangem5t in/ead (  
be+ made directly by ! employee %all n  
affect ! d$uctibility or o!r tax        
treatm5t ( ! contribution or ( o!r      
am\nts "u ?is title4  7#b7 ,payroll     
sav+s contributions tak5 into acc\nt    
,any contribution to an individual      

retirem5t plan or pur*ase ( a retirem5t 
bond made on behalf ( an employee "u an 
automatic ,,ira arrangem5t %all be tak5 
into acc\nt 9 apply+ ! limitations on   
contributions to individual retirem5t   
plans & ! o!r provisions ( ?is title    
applicable to individual retirem5t plans
 z if ! contribution or pur*ase _h be5  
made directly by ! employee4  7f7       
,deposits to plans ( a designat$ tru/ee 
or issu] & = retirem5t bonds  7#a7 ,9   
g5]al ,an employ] %all n be treat$ z    
fail+ to satisfy ! requirem5ts ( ?is    
section or any o!r provision ( ?is title
 m]ely because ! employ] makes all      
contributions 7or all contributions on  
behalf ( employees :o d n specify an    
individual retirem5t plan1 tru/ee1 or   
issu] to receive ! contributions7 to    
individual retirem5t plans specifi$ 9   
p>agraph 7#b7 or to ! ,secret>y or 8    
ag5t = ! pur*ase ( retirem5t bonds      
specifi$ 9 p>agraph 7#c74  7#b7         
,individual retirem5t plans o!r ?an ^?  
select$ by employee ,an employ] may     

elect to h contributions = all qualify+ 
employees p>ticipat+ 9 an automatic     
,,ira arrangem5t made to individual     
retirem5t plans ( a tru/ee or issu] "u !
 arrangem5t t has be5 designat$ by !    
employ]4 ,! prec$+ s5t5ce %all n apply  
unless ea* p>ticipant is notifi$ 9 writ+
 t ! p>ticipant's balance may be        
transf]r$ )\t co/ or p5alty to ano!r    
individual retirem5t plan e/abli%$ by or
 on behalf ( ! p>ticipant4  7#c7        
,retirem5t bonds  7,a7 ,9 g5]al ,!      
,secret>y %all provide t contributions  
deposit$ "u subp>agraph 7,b7 %all be    
appli$ to ! pur*ase ( a retirem5t bond 9
 ! "n ( ea* applicable employee4  7,b7  
,payroll deposit features ,! ,secret>y  
%all e/abli% proc$ures s t contributions
 may be appli$ to ! pur*ase ( retirem5t 
bonds )\t undue adm9i/rative or pap]work
 requirem5ts on p>ticipat+ employ]s4    
,su* proc$ures %all ensure t only #a su*
 retirem5t bond ( ea* type 7traditional 
or ,ro?7 is issu$ = ea* ,,t94  7#d7     
,payroll tax deposit proc$ure ,!        

proc$ures ! ,secret>y %all e/abli% may  
include a proc$ure "u :i* an employ]--  
7,a7 may include ) ea* deposit ( tax    
requir$ to be d$uct$ & )held "u *apt]   
#bd ! aggregate am\nts1 = ! p]iod cov]$ 
by ! deposit1 :i* qualify+ employees h  
designat$ "u subsection clause 7i77,i7 (
 subsection 7d77#a77;,b7 7or are deem$  
to h designat$ "u clause 7ii7 ( su*     
subsection7 z contributions to pur*ase  
retirem5t bonds on behalf ( ! employees 
"u p>agraph 7#c71 &  7,b7 specifies1 9  
su* mann] z ! ,secret>y may prescribe1  
in=mation ne$$ to pur*ase retirem5t     
bonds on behalf ( ea* applicable        
employee = :om a contribution is to be  
made1 includ+--  7i7 ! employee's "n &  
,,t91 &  7ii7 ! am\nt ( ! contribution4 
7#e7 ,purposes ,! purposes ( ! retirem5t
 bond program e/abli%$ "u ?is subsection
 & subsection 7g7 include--  7,a7       
provid+ new sav]s a conv5i5t1 l[-co/    
inve/m5t option suitable = ! initial    
accumulation ( small automatic ,,ira    
contributions1  7,b7 to reflect ! int5t 

t ! long-t]m inve/m5t ( automatic ,,ira 
funds = mo/ sav]s be 9 ! private m>ket r
 ?an 9 retirem5t bonds1 enc\rag+ &      
assi/+ individuals :o accumulate l>g]   
am\nts 9 retirem5t bonds to transf] ^?  
funds to individual retirem5t plans 9 ! 
private m>ket1 :ile  7,c7 p]mitt+       
individuals to rema9 inve/$ 9 retirem5t 
bonds if !y *oose to d s4  7#f7         
,regulations ,! ,secret>y may issue su* 
regulations z are necess>y to c>ry out !
 purposes ( ?is subsection & subsection 
7g71 includ+--  7,a7 e/abli%m5t (       
proc$ures to communicate to individuals 
! importance ( inve/m5t div]sification &
 ! transf] option describ$ 9 subp>agraph
 7,b71  7,b7 simplifi$ proc$ures "u :i* 
hold]s ( retirem5t bonds may p]iodically
 *oose to h ! bonds or _! proce$s       
transf]r$ to available individual       
retirem5t plans1 &  7,c7 means by :i*   
individuals may elect 7or be treat$ z   
elect+7 :e!r to h retirem5t bonds or _! 
proce$s s transf]r$4  ,any su* transf]  
%all be treat$ z a rollov] contribution 

= purposes ( section #djh7;d77#c7 7o!r  
?an subp>agraph 7,b7 !re(74  7g7        
,retirem5t bond  7#a7 ,retirem5t bond ,!
 t]m retirem5t bond means a bond issu$  
"u *apt] #ca ( title #ca1 :i* by its    
t]ms1 or by regulations prescrib$ by !  
,secret>y "u su* *apt]--  7,a7 provides 
= int]e/ to be cr$it$ at rates t take   
into acc\nt ! expect$ duration ( ! funds
 inve/$ 9 retirem5t bonds & at rates    
det]m9$ or adju/$ 9 a mann] & )         
suffici5t frequ5cy to provide sub/antial
 protection f inflation1  7,b7 is n     
transf]able1 &  7,c7 is design$ =       
inve/m5t = retirem5t "u automatic ,,ira 
arrangem5ts or o!r sav+s vehicles4  7#b7
 ,individual retirem5t plan rules       
applicable ,! provisions ( ?is title    
applicable to an individual retirem5t   
plan 7z def9$ 9 section #ggja7;a77#cg771
 includ+ provisions relat+ to           
contributions1 hold+ & di/ributions1    
%all apply to a retirem5t bond1 except z
 det]m9$ by ! ,secret>y4  7#c7 ,annual  
/atem5t ,z soon z practicable aft] !    

close ( ! cal5d> ye>1 ! ,secret>y %all  
make available an annual /atem5t to ea* 
p>ticipant sett+ =?--  7,a7 paym5ts made
 by or on behalf ( ! p>ticipant = !     
retirem5t bond1  7,b7 am\nts e>n$ by !  
retirem5t bond1  7,c7 ! value ( ! acc\nt
 z ( ! close ( su* cal5d> ye>1  7,d7 !  
importance ( div]sify+ retirem5t sav+s1 
7,e7 ! b5efits ( a well-balanc$ &       
div]sifi$ inve/m5t portfolio1  7,f7 a   
notice ( ! int]net website ( ! ,dep>tm5t
 ( ,labor = s\rces ( in=mation on       
individual inve/+ & div]sification1     
7,g7 ! proc$ures = r$eem+ a retirem5t   
bond & directly transf]r+ ! r$eem$ am\nt
 into an individual retirem5t plan1     
7,h7 o!r factors affect+ retirem5t sav+s
 decisions1 &  7,i7 su* o!r in=mation z 
! ,secret>y det]m9es necess>y or        
appropriate4  7h7 ,model notice ,!      
,secret>y %all--  7#a7 provide a model  
notice1 writt5 9 a mann] calculat$ to be
 und]/&able to ! av]age work]1 t is     
simple = employ]s to use--  7,a7 to     
notify employees ( ! requirem5t "u ?is  

section = ! employ] to provide c]ta9    
employees ) ! opportunity to p>ticipate 
9 an automatic ,,ira arrangem5t1 &  7,b7
 to satisfy ! requirem5ts ( subsection  
7d77#b77;,c71  7#b7 provide uni=m =ms = 
enrollm5t1 includ+ automatic enrollm5t1 
9 an automatic ,,ira arrangem5t1 &  7#c7
 e/abli% a website or o!r electronic    
means t small employ]s c access & use to
 obta9 in=mation on automatic ,,ira     
arrangem5ts & to obta9 requir$ notices &
 =ms4  ,! in=mation ref]r$ to 9 p>agraph
 7#c7 %all be provid$ 9 a mann] design$ 
to assi/ employ]s & provid]s by         
facilitat+ ! id5tification by employ]s (
 private-sector provid]s ( individual   
retirem5t plans & associat$ inve/m5t    
options t are appropriate = use 9       
automatic ,,ira arrangem5ts4  7i7 ,cross
 ref]5ce ,= provision preempt+ conflict+
 ,/ate laws1 see section #b7k7 ( !      
,automatic ,,ira ,act ( #bjac4  4  7b7  
,m&atory transf]s ,section              
#dja7;a77#ca77;,b7 is am5d$--  7#a7 by  
ins]t+ 7includ+ an automatic ,,ira      

arrangem5t7 aft] individual retirem5t   
plan ea* place x appe>s1 &  7#b7 by add+
 at ! end ! foll[+ new s5t5ce3 ,any     
am\nt s transf]r$ 7& any e>n+s !reon7   
%all be inve/$ 9 a default inve/m5t     
describ$ 9 section #djh;,b7d77#e744  7c7
 ,p5alty = failure ,to timely remit     
contributions to automatic ,,ira        
arrangem5ts ,section #dige7;c7 is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#g7 ,special rule = automatic ,,ira    
arrangem5ts ,= purposes ( p>agraph 7#a71
 if an employ] is requir$ "u an         
automatic ,,ira arrangem5t "u section   
#djh;,b to deposit am\nts )held f an    
employee's comp5sation into an automatic
 ,,ira or t[>d ! pur*ase ( a retirem5t  
bond b fails to d s )9 ! "t prescrib$ "u
 section #djh;,b7d77#b77;,a71 su* am\nts
 %all be treat$ z assets ( ! automatic  
,,ira4  4  7d7 ,coord9ation ) ,employee 
,retirem5t ,income ,security ,act (     
#aigd  7#a7 ,exemption  7,a7 ,9 g5]al   
,section #c7b7 ( ! ,employee ,retirem5t 
,income ,security ,act ( #aigd 7#bi     

,u4,s4,c4 #ajjb7b77 is am5d$--  7i7 by  
ins]t+ or 7,c7 aft] subp>agraph 7,b7 9  
subp>agraph 7,a71 &  7ii7 by add+ at !  
end ! foll[+ new subp>agraph3  7,c7 ,an 
automatic ,,ira arrangem5t describ$ 9   
section #djh;,b7d7 ( ! ,int]nal ,rev5ue 
,code ( #aihf %all n be treat$ z an     
employee p5sion b5efit plan or p5sion   
plan if1 "u ! arrangem5t1 contributions 
are to be made to an automatic ,,ira !  
provid] ( :i* is includ$ 9 ! website li/
 e/abli%$ "u section #djh;,b7h77#c7 (   
su* ,code1 are to be made to an         
individual retirem5t plan designat$ by !
 employee1 or are to be inve/$ 9        
retirem5t bonds 7:e!r to ! ,secret>y ( !
 ,treasury or to a designat$ tru/ee or  
o!r ag5t = t purpose74  4  7,b7 ,cu/om] 
id5tification program ,not)/&+ ! am5dm5t
 made by subp>agraph 7,a71 an individual
 retirem5t plan e/abli%$ pursuant to an 
automatic ,,ira arrangem5t describ$ 9   
section #djh;,b7d7 ( ! ,int]nal ,rev5ue 
,code ( #aihf %all1 = purposes ( any    
cu/om] id5tification program e/abli%$ "u

 section #ecah7l7 ( title #ca1 ,unit$   
,/ates ,code1 be treat$ z an acc\nt op5$
 = ! purpose ( p>ticipat+ 9 an employee 
b5efit plan e/abli%$ "u ! ,employee     
,retirem5t ,income ,security ,act (     
#aigd4  7#b7 ,fiduci>y duties ,section  
#djd7;c77#b7 ( su* ,act is am5d$--  7,a7
 by ins]t+ ! foll[+ s5t5ce be=e ! la/   
s5t5ce3 ,9 ! case ( an automatic ,,ira  
"u section #djh;,b ( su* ,code t is n   
exempt "u section #c7b77;,c71 a         
p>ticipant or b5efici>y %all1 = purposes
 ( p>agraph 7#a71 be treat$ z ex]cis+   
control ov] ! assets 9 ! acc\nt on &    
aft] ! #g? day aft] notice has be5 giv5 
to an employee t su* automatic ,,ira has
 be5 e/abli%$ on behalf ( ! employee41 &
  7,b7 by ins]t+ or ) respect to an     
automatic ,,ira "u section #djh;,b ( su*
 ,code aft] arrangem5t 9 ! la/ s5t5ce4  
7e7 ,notice ( availability ( inve/m5t   
guidel9es  7#a7 ,9 g5]al ,section       
#djh7;i7 7relat+ to reports7 is am5d$ by
 add+ at ! end ! foll[+ new s5t5ces3    
,any report furni%$ "u p>agraph 7#b7 to 

an individual %all include notice ( !   
int]net website ( ! ,dep>tm5t ( ,labor =
 s\rces ( in=mation on individual inve/+
 & div]sification44  7#b7 ,update       
,in=mation ,su* in=mation %all be       
modifi$ 7or updat$7 by ! ,secret>y (    
,labor 9 consultation ) ! ,secret>y ( ! 
,treasury & ! ,*airman ( ! ,securities &
 ,ex*ange ,commission to address ne$$   
*anges due to ! creation ( automatic    
,i,r,as4  7f7 ,failure ,to provide      
access to payroll sav+s arrangem5ts     
,*apt] #dc 7relat+ to qualifi$ p5sion1  
etc41 plans7 is am5d$ by add+ at ! end !
 foll[+ new section3  #dihj;,j4         
,requirem5ts = cov]$ employ]s to provide
 employees access to automatic ,,ira    
arrangem5ts  7a7 ,g5]al rule ,!re is    
h]eby impos$ a tax on any failure by a  
cov]$ employ] 7z def9$ 9 section        
#djh;,b7 to meet ! requirem5ts (        
subsection 7d7 = a cal5d> ye>4  7b7     
,am\nt  7#a7 ,9 g5]al ,! am\nt ( ! tax  
impos$ by subsection 7a7 on any failure 
= any cal5d> ye> %all be #ajj ) respect 

to ea* employee to :om su* failure      
relates4  7#b7 ,tax n to apply :]e      
failure n discov]$ & reasonable dilig5ce
 ex]cis$ ,no tax %all be impos$ by      
subsection 7a7 on any failure dur+ any  
p]iod = :i* x is e/abli%$ to !          
satisfaction ( ! ,secret>y t ! employ]  
subject to liability = ! tax did n "k t 
! failure exi/$ & ex]cis$ reasonable    
dilig5ce to meet ! requirem5ts (        
subsection 7d74  7#c7 ,tax n to apply to
 failures correct$ )9 #ij days ,no tax  
%all be impos$ by subsection 7a7 on any 
failure if--  7,a7 ! employ] subject to 
liability = ! tax "u subsection 7a7     
ex]cis$ reasonable dilig5ce to meet !   
requirem5ts ( subsection 7d71 &  7,b7 ! 
employ] provides ! automatic ,,ira      
arrangem5t describ$ 9 section #djh;,b to
 ea* employee eligible to p>ticipate 9 !
 arrangem5t by ! end ( ! #ij-;day p]iod 
beg9n+ on ! fir/ date ! employ] knew1 or
 ex]cis+ reasonable dilig5ce w\ld h     
kn[n1 t su* failure exi/$4  7#d7 ,waiv] 
by ,secret>y ,9 ! case ( a failure :i*  

is due to reasonable cause & n to       
willful neglect1 ! ,secret>y may waive  
"p or all ( ! tax impos$ by subsection  
7a7 to ! ext5t t ! paym5t ( su* tax w\ld
 be excessive or o!rwise inequitable    
relative to ! failure involv$4  7c7     
,proc$ures = notice ,! ,secret>y may    
prescribe & implem5t proc$ures = obta9+ 
confirmation t employ]s are 9 compliance
 ) ! requirem5ts ( subsection 7d74 ,!   
,secret>y1 9 ! ,secret>y's discretion1  
may prescribe t ! confirmation %all be  
obta9$ on an annual or less frequ5t     
basis1 & may use = ?is purpose ! annual 
report or qu>t]ly report = employm5t    
taxes1 or su* o!r means z ! ,secret>y   
may deem advisable4  7d7 ,requirem5t ,to
 provide employee access to automatic   
,,ira arrangem5ts ,! requirem5ts ( ?is  
subsection are met if ! employ] meets ! 
requirem5ts ( section #djh;,b4  4  7g7  
,waiv] ( e>ly )drawal p5alty = c]ta9    
di/ributions foll[+ initial election ,to
 p>ticipate 9 automatic ,,ira arrangem5t
 ,subsection 7t7 ( section #gb is am5d$ 

by add+ at ! end ! foll[+ new p>agraph3 
7#aa7 ,di/ribution foll[+ initial       
election to p>ticipate 9 automatic ,,ira
 arrangem5t ,p>agraph 7#a7 %all n apply 
9 ! case ( a di/ribution to a qualify+  
employee made n lat] ?an #ij days aft] !
 initial election "u section            
#djh;,b7d77#a77;,b77ii74  4  7h7        
,bankruptcy ,section #ebb ( title #aa1  
,unit$ ,/ates ,code1 is am5d$--  7#a7 9 
subsection 7d77#ab7 by ins]t+ #djh;,b1  
aft] #djh;,a11 &  7#b7 9 subsection 7n7 
by ins]t+ 1 or 9 an automatic ,,ira     
arrangem5t describ$ 9 section #djh;,b14 
7i7 ,automatic ,,ira ,advisory ,gr\p    
7#a7 ,9 g5]al ,n lat] ?an #fj days aft] 
! date ( enactm5t ( ?is ,act1 !         
,secret>y ( ! ,treasury & ! ,secret>y ( 
,labor %all jo9tly e/abli% an ,automatic
 ,,ira ,advisory ,gr\p 79 ?is subsection
 ref]r$ to z ! ,advisory ,gr\p74 ,!     
purpose ( ! ,advisory ,gr\p %all be to  
make recomm5dations reg>d+ ! automatic  
,,ira inve/m5t options describ$ 9       
section #djh;,b7d77#e7 ( ! ,int]nal     

,rev5ue ,code ( #aihf & ! website       
describ$ 9 section #djh;,b7h77#c7 ( su* 
,code1 includ+1 ) respect to automatic  
,,ira arrangem5ts1 ! disclosure (       
in=mation reg>d+ fees & exp5ses1 ! use (
 l[-co/ inve/m5t options1 ! appropriate 
use ( electronic me?ods to provide      
notice & disclosure1 & su* o!r relat$   
matt]s z may be det]m9$ by !            
,secret>ies4  7#b7 ,memb]%ip ,!         
,advisory ,gr\p %all consi/ ( n m ?an   
#ae memb]s & %all be compos$ (--  7,a7  
su* p]sons z ! ,secret>ies ( ! ,treasury
 & ,labor may consid] appropriate to    
provide exp]tise reg>d+ inve/m5ts =     
retirem5t1 includ+ provid]s ( individual
 retirem5t acc\nts & individual         
retirem5t annuities describ$ 9 section  
#djh or #djh;,a ( su* ,code1 &  7,b7 "o 
or m repres5tatives ( ! ,dep>tm5t (     
,labor & ( ! ,dep>tm5t ( ! ,treasury4   
7#c7 ,comp5sation ,! memb]s ( !         
,advisory ,gr\p %all s]ve )\t           
comp5sation4  7#d7 ,adm9i/rative support
 ,! ,dep>tm5t ( ! ,treasury & !         

,dep>tm5t ( ,labor %all jo9tly provide  
appropriate adm9i/rative support to !   
,advisory ,gr\p1 includ+ te*nical       
assi/ance4 ,! ,advisory ,gr\p may use ! 
s]vices & facilities ( su* ,dep>tm5ts1 )
 or )\t reimbursem5t1 z jo9tly det]m9$  
by su* ,dep>tm5ts4  7#e7 ,report by     
advisory gr\p ,n lat] ?an #ab mon?s aft]
 ! date ( ! enactm5t ( ?is ,act1 !      
,advisory ,gr\p %all submit to !        
,secret>y ( ,labor & ! ,secret>y ( !    
,treasury a report conta9+ its          
recomm5dations4 ,! ,secret>ies may      
reque/ t ! ,advisory ,gr\p submit       
subsequ5t reports4  7j7 ,con=m+ am5dm5ts
  7#a7 ,! table ( sections = subp>t ,a (
 "p ,i ( sub*apt] ,d ( *apt] #a is am5d$
 by ins]t+ aft] ! item relat+ to section
 #djh;,a ! foll[+ new item3  ,sec4      
#djh;,b4 ,"r to automatic ,,ira         
arrangem5ts at "w4  4  7#b7 ,! table (  
sections = *apt] #dc is am5d$ by add+ at
 ! end ! foll[+ new item3  ,sec4        
#dihj;,j4 ,requirem5ts = employ]s to    
provide employees access to automatic   

,,ira arrangem5ts4  4  7k7 ,preemption (
 conflict+ ,/ate laws ,! am5dm5ts made  
by ?is section %all sup]s$e any law ( a 
,/ate t w\ld directly or indirectly     
prohibit or re/rict ! e/abli%m5t or     
op]ation ( an automatic ,,ira arrangem5t
 meet+ ! requirem5ts ( section #djh;,b (
 ! ,int]nal ,rev5ue ,code ( #aihf4 ,no?+
 9 su* am5dm5ts %all be con/ru$ to      
impair or sup]s$e any ,/ate law to !    
ext5t x provides a rem$y = ! failure to 
make payroll deposit paym5ts "u any su* 
automatic ,,ira arrangem5t )9 ! p]iod   
requir$ "u su* section #djh;,b4  7l7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to cal5d> ye>s beg9n+
 aft] ,decemb] #ca1 #bjad4  #c4 ,cr$it =
 small employ]s ma9ta9+ automatic ,,ira 
arrangem5ts  7a7 ,9 g5]al ,subp>t ,d (  
"p ,,iv ( sub*apt] ,a ( *apt] #a 7relat+
 to bus9ess relat$ cr$its7 is am5d$ by  
add+ at ! end ! foll[+ new section3     
#de,s4 ,small employ] automatic ,,ira   
arrangem5t  7a7 ,g5]al rule ,= purposes 
( section #ch1 9 ! case ( an eligible   

employ] ma9ta9+ an automatic ,,ira      
arrangem5t meet+ ! requirem5ts ( section
 #djh;,b 7)\t reg>d to :e!r ! employ] is
 requir$ to ma9ta9 ! arrangem5t71 !     
small employ] automatic ,,ira arrangem5t
 cr$it det]m9$ "u ?is section = any     
taxable ye> is ! am\nt det]m9$ "u       
subsection 7b74  7b7 ,am\nt ( cr$it     
7#a7 ,9 g5]al ,! am\nt ( ! cr$it det]m9$
 "u ?is section = any taxable ye> )     
respect to an eligible employ] %all be !
 sum (--  7,a7 #be multipli$ by ! numb] 
( qualify+ employees 7)9 ! mean+ (      
section #djh;,b7c77 = :om contributions 
are made "u ! automatic ,,ira arrangem5t
 ref]r$ to 9 subsection 7a7 = ! cal5d>  
ye> 9 :i* ! taxable ye> beg9s1 plus     
7,b7 #ejj = ! taxable ye> :i* beg9s 9 ! 
fir/ cal5d> ye>1 & #bej = ! taxable ye> 
:i* beg9s 9 ! second cal5d> ye>1 9 :i* !
 eligible employ] ma9ta9s an automatic  
,,ira arrangem5t meet+ ! requirem5ts (  
section #djh;,b4  7#b7 ,limitation ,no m
 ?an #aj qualify+ employees may be tak5 
into acc\nt "u p>agraph 7#a77;,a7 = a   

taxable ye>4  7#c7 ,duration ( cr$it ,! 
cr$it describ$ 9 p>agraph 7#a77;,a7 %all
 apply only = a taxable ye> :i* beg9s 9 
! fir/ #f cal5d> ye>s 9 :i* ! eligible  
employ] ma9ta9s an automatic ,,ira      
arrangem5t meet+ ! requirem5ts ( section
 #djh;,b4  7#d7 ,coord9ation ) small    
employ] />tup cr$it  7,a7 ,no cr$it %all
 be all[$ "u ?is section to ! employ] = 
any taxable ye> if a cr$it is det]m9$ "u
 section #de;,e ) respect to ! employ] =
 ! taxable ye>4  7,b7 ,if ! eligible    
employ] ma9ta9s an automatic ,,ira      
arrangem5t meet+ ! requirem5ts ( section
 #djh;,b ) respect to any ( ! fir/ ?ree 
cal5d> ye>s = :i* ! employ] c\ld adopt  
su* an arrangem5t & subsequ5tly adopts  
an eligible employ] plan = its employees
 = any ( ^? ye>s :i* x ma9ta9s = su*    
?ird taxable ye>1 !n section            
#de;,e7b77#a7 %all be appli$ ) respect  
to ! eligible employ] by replac+ #b     
taxable ye>s ) #c taxable ye>s4  7c7    
,eligible employ] ,= purposes ( ?is     
section1 ! t]m eligible employ] means1 )

 respect to any cal5d> ye> 9 :i* !      
taxable ye> beg9s1 an employ] :i*--     
7#a7 ma9ta9s an automatic ,,ira         
arrangem5t meet+ ! requirem5ts ( section
 #djh;,b1  7#b7 on ea* day dur+ ! prec$+
 cal5d> ye>1 _h no m ?an #ajj employees1
 &  7#c7 did n ma9ta9 a qualify+ plan or
 arrangem5t 7describ$ 9 section         
#djh;,b7b77 dur+ ! portion ( ! cal5d>   
ye> prec$+ ! adoption ( ! automatic     
,,ira arrangem5t & ! #b prec$+ cal5d>   
ye>s4  7d7 ,o!r rules ,= purposes ( ?is 
section1 ! rules ( section #de;,e7e7    
%all apply4  4  7b7 ,cr$it all[$ z "p ( 
g5]al bus9ess cr$it ,section #ch7;b7    
7def9+ curr5t ye> bus9ess cr$it7 is     
am5d$ by /rik+ plus at ! end ( p>agraph 
7#ce71 by /rik+ ! p]iod at ! end (      
p>agraph 7#cf7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#cg7 9 ! case ( an eligible employ] 7z 
def9$ 9 section #de,s7c77 ma9ta9+ an    
automatic ,,ira arrangem5t meet+ !      
requirem5ts ( section #djh;,b1 ! small  
employ] automatic ,,ira arrangem5t cr$it

 det]m9$ "u section #de,s7a74  4  7c7   
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a is am5d$ by add+ at ! end !    
foll[+ new item3  ,sec4 #de,s4 ,small   
employ] automatic ,,ira arrangem5t4  4  
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to taxable ye>s  
beg9n+ aft] ,decemb] #ca1 #bjad4  #d4   
,/udies  7a7 ,9 g5]al ,! ,secret>y ( !  
,treasury & ! ,secret>y ( ,labor %all   
jo9tly conduct a sep>ate /udy ( !       
feasibility & desirability ( ea* ( !    
foll[+3  7#a7 ,ext5d+ to automatic ,,ira
 arrangem5ts sp\sal cons5t requirem5ts  
simil> to1 or bas$ on1 ^? t apply "u !  
,f$]al ,employees' ,?rift ,sav+s ,plan1 
includ+ consid]ation ( :e!r             
modifications ( su* requirem5ts are     
necess>y to apply !m to automatic ,,ira 
arrangem5ts4  7#b7 ,e/abli%+ proc$ures  
"u :i* am\nts sav$ by employees 9       
retirem5t bonds w\ld be automatically   
transf]r$ into alt]native div]sifi$     
inve/m5ts provid$ by ! private sector :5

 employees' automatic ,,ira balances    
rea* a c]ta9 doll> level z well z       
proc$ures facilitat+ employees' ability 
to transf] into su* private sector      
inve/m5ts4  7b7 ,/udy ( consolidation ( 
individual retirem5t plans ,! ,secret>y 
( ! ,treasury & ! ,secret>y ( ,labor    
%all jo9tly conduct a sep>ate /udy ( !  
feasibility & desirability (--  7#a7 us+
 data submitt$ on inve/m5ts 9 individual
 retirem5t acc\nts & annuities to enable
 individuals ) multiple su* acc\nts &   
annuities t include v small am\nts to   
receive p]iodic notices in=m+ !m ab\t ! 
location ( ^! acc\nts & h[ su* acc\nts &
 annuities might be consolidat$1 &  7#b7
 us+ inve/m5t arrangem5ts associat$ )   
automatic ,i,r,as to assi/ 9 address+ ! 
problem ( ab&on$ acc\nts4  7c7 ,report  
,n lat] ?an #ah mon?s aft] ! date ( !   
enactm5t ( ?is ,act1 ! ,secret>ies %all 
report ! results ( ea* /udy conduct$ "u 
?is section1 toge!r ) any recomm5dations
 = legislative *anges1 to ! ,committees 
on ,f9ance & ,heal?1 ,education1 ,labor1

 & ,p5sions ( ! ,s5ate & ! ,committees  
on ,ways & ,means & ,education & !      
,work=ce ( ! ,h\se ( ,repres5tatives4   
#e4 ,elim9at+ b>ri]s to use ( multiple  
employ] plans ,by ,decemb] #ca1 #bjac1 !
 ,secret>ies ( ! ,treasury & ,labor     
%all--  7#a7 prescribe adm9i/rative     
guidance e/abli%+ conditions "u :i* an  
employ] p>ticipat+ 9 a plan describ$ 9  
section #dac7;c7 ( ! ,int]nal ,rev5ue   
,code ( #aihf %all n h any liability "u 
title ,i ( ! ,employee ,retirem5t       
,income ,security ,act ( #aigd ) respect
 to ! acts or omissions ( "o or m o!r   
p>ticipat+ employ]s1 :i* regulations may
 require t ! portion ( ! plan           
attributable to su* p>ticipat+ employ]s 
be spun (f to plans ma9ta9$ by su*      
employ]s1  7#b7 prescribe adm9i/rative  
guidance e/abli%+ conditions "u :i* a   
plan describ$ 9 section #dac7;c7 ( su*  
,code may be treat$ z satisfy+ !        
qualification requirem5ts ( sections    
#dja7;a7 & #dac7;c7 ( su* ,code despite 
! violation ( su* requirem5ts by "o or m

 p>ticipat+ employ]s1 includ+ requir+1  
if appropriate1 t ! portion ( ! plan    
attributable to su* p>ticipat+ employ]s 
be spun (f to plans ma9ta9$ by su*      
employ]s1 &  7#c7 prescribe adm9i/rative
 guidance provid+ simplifi$ means by :i*
 plans describ$ 9 section #dac7;c7 ( su*
 ,code may satisfy ! requirem5ts (      
section #ajc ( ! ,employee ,retirem5t   
,income ,security ,act ( #aigd4  #f4    
,increase 9 cr$it limitation = small    
employ] p5sion plan />tup co/s  7a7 ,9  
g5]al ,p>agraph 7#a7 ( section #de;,e7b7
 is am5d$ to read z foll[s3  7#a7 = !   
fir/ cr$it ye> & ea* ( ! #b taxable ye>s
 imm$iately foll[+ ! fir/ cr$it ye>1 !  
great] (--  7,a7 #ejj1 or  7,b7 ! less] 
(--  7i7 #bej = ea* employee ( !        
eligible employ] :o is n a highly       
comp5sat$ employee 7z def9$ 9 section   
#dae7q77 & :o is eligible to p>ticipate 
9 ! eligible employ] plan ma9ta9$ by !  
eligible employ]1 or  7ii7 #e1jjj4  4   
7b7 ,effective date ,! am5dm5t made by  
?is section %all apply to taxable ye>s  

beg9n+ aft] ,decemb] #ca1 #bjac4