,i #aac? ,,congress #a/ ,session ,h4 ,r4 #baag ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #bb1 #bjac ,mr4 ,neal introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committees on ,education & ! ,work=ce1 ,arm$ ,s]vices1 ,ov]sight & ,gov]nm5t ,re=m1 & ,transportation & ,infra/ructure1 = 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 simplify & enhance qualifi$ retirem5t plans1 & = o!r purposes4 #a4 ,%ort title2 ref]5ce2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,retirem5t ,plan ,simplification & ,enhancem5t ,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 7c7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 ref]5ce2 table ( cont5ts4 ,title ,i--,exp&+ ,cov]age & ,increas+ ,retirem5t ,sav+s ,sec4 #aja4 ,modification ( automatic enrollm5t safe h>bor4 ,sec4 #ajb4 ,secure def]ral arrangem5ts4 ,sec4 #ajc4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate4 ,sec4 #ajd4 ,sep>ate application ( top heavy rules to def9$ contribution plans cov]+ "p-"t employees4 ,sec4 #aje4 ,modification ( sav]'s cr$it4 ,sec4 #ajf4 ,retirem5t h&book & retirem5t read9ess *eckli/4 ,sec4 #ajg4 ,additional "t to adopt a qualifi$ plan4 ,title ,,ii--,enc\rag+ ,small ,bus9esses to ,ent] & ,rema9 9 ! ,employ] ,retirem5t ,plan ,sy/em ,sec4 #bja4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s4 ,sec4 #bjb4 ,elim9at+ b>ri]s to use ( multiple employ] plans4 ,title ,,iii--,pres]vation ( ,income ,sec4 #cja4 ,/udy ( application ( sp\sal cons5t rules to def9$ contribution plans4 ,sec4 #cjb4 ,adm9i/ration ( jo9t & survivor annuity requirem5ts4 ,sec4 #cjc4 ,availability ( di/ribution options4 ,sec4 #cjd4 ,rollov] ( insurance contracts to ,i,r,as4 ,sec4 #cje4 ,portability ( lifetime income options4 ,sec4 #cjf4 ,lo/ ,p5sion ,plan ,regi/ry4 ,title ,,iv--,simplification & ,cl>ification ( ,qualifi$ ,retirem5t ,plan ,rules ,sec4 #dja4 ,exception f requir$ di/ributions :]e aggregate retirem5t sav+s d n exce$ #ajj1jjj4 ,sec4 #djb4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em4 ,sec4 #djc4 ,use ( =feitures to fund safe h>bor contributions4 ,sec4 #djd4 ,sub/antial cessation ( op]ations4 ,sec4 #dje4 ,*ur* plan cl>ification4 ,sec4 #djf4 ,protect+ old]1 long] s]vice p>ticipants4 ,sec4 #djg4 ,review & report to ! ,congress relat+ to report+ & disclosure requirem5ts4 ,sec4 #djh4 ,consolidation ( def9$ contribution plan notices4 ,sec4 #dji4 ,p]=mance b5*m>ks = asset allocation funds4 ,sec4 #daj4 ,p]mit nonsp\sal b5efici>ies to roll assets to plans4 ,sec4 #daa4 ,elim9ate ! 8fir/ day ( ! mon?0 requirem5t4 ,title ,v--,provisions ensur+ equity 9 divorce ,sec4 #eja4 ,special rules relat+ to treatm5t ( qualifi$ dome/ic relations ord]s4 ,sec4 #ejb4 ,elim9ation ( curr5t connection requirem5t "u ,railroad ,retirem5t ,act = c]ta9 survivors4 ,sec4 #ejc4 ,p]mitt+ divorc$ sp\ses & wid[s & wid[]s to rem>ry aft] turn+ #fj )\t a p5alty "u ,railroad ,retirem5t ,act4 ,sec4 #ejd4 ,repeal ( jurisdictional requirem5t = c\rt to treat milit>y retirem5t pay z prop]ty ( ! milit>y memb] & sp\se4 ,sec4 #eje4 ,modification ( r$uctions 9 disposable retir$ pay = paym5ts 9 compliance ) c\rt ord]s4 ,sec4 #ejf4 ,survivor annuities = wid[s1 wid[]s1 & =m] sp\ses ( f$]al employees :o die be=e atta9+ age = def]r$ annuity "u civil s]vice retirem5t sy/em4 ,sec4 #ejg4 ,c\rt ord]s relat+ to ,f$]al retirem5t b5efits = =m] sp\ses ( f$]al employees4 ,title ,,vi--,(fice ( ,p>ticipant & ,plan ,sponsor ,advocate ,sec4 #fja4 ,(fice ( ,p>ticipant & ,plan ,sponsor ,advocate4 ,i ,exp&+ ,cov]age & ,increas+ ,retirem5t ,sav+s #aja4 ,modification ( automatic enrollm5t safe h>bor 7a7 ,9 g5]al 7#a7 ,removal ( #aj p]c5t cap ,clause 7iii7 ( section #dja7k77#ac77;,c7 is am5d$ by /rik+ 1 does n exce$ #aj p]c5t1 & is at lea/ & ins]t+ & is4 7#b7 ,con=m+ am5dm5ts 7,a7 ,subclause 7,i7 ( section #dja7k77#ac77;,c77iii7 is am5d$ by /rik+ #c p]c5t & ins]t+ at lea/ #c p]c5t1 b n great] ?an #aj p]c5t14 7,b7 ,subclause 7,,ii7 ( section #dja7k77#ac77;,c77iii7 is am5d$ by /rik+ #d p]c5t & ins]t+ at lea/ #d p]c5t4 7,c7 ,subclause 7,,iii7 ( section #dja7k77#ac77;,c77iii7 is am5d$ by /rik+ #e p]c5t & ins]t+ at lea/ #e p]c5t4 7,d7 ,subclause 7,,iv7 ( section #dja7k77#ac77;,c77iii7 is am5d$ by /rik+ #f p]c5t & ins]t+ at lea/ #f p]c5t4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ! date ( enactm5t ( ?is ,act4 #ajb4 ,secure def]ral arrangem5ts 7a7 ,9 g5]al ,subsection 7k7 ( section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ad7 ,alt]native me?od = secure def]ral arrangem5ts to meet nondiscrim9ation requirem5ts 7,a7 ,9 g5]al ,a secure def]ral arrangem5t %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#c77;,a77ii74 7,b7 ,secure def]ral arrangem5t ,= purposes ( ?is p>agraph1 ! t]m secure def]ral arrangem5t means any ca% or def]r$ arrangem5t :i* meets ! requirem5ts ( subp>agraphs 7,c71 7,d71 & 7,e7 ( p>agraph 7#ac71 except z modifi$ by ?is p>agraph4 7,c7 ,qualifi$ p]c5tage ,= purposes ( ?is p>agraph1 ) respect to any employee1 ! t]m qualifi$ p]c5tage means1 9 lieu ( ! mean+ giv5 su* t]m 9 p>agraph 7#ac77;,c77iii71 any p]c5tage det]m9$ "u ! arrangem5t if su* p]c5tage is appli$ uni=mly & is-- 7i7 at lea/ #f p]c5t1 b n great] ?an #aj p]c5t1 dur+ ! p]iod end+ on ! la/ day ( ! fir/ plan ye> :i* beg9s aft] ! date on :i* ! fir/ elective contribution describ$ 9 p>agraph 7#ac77;,c77i7 is made ) respect to su* employee1 7ii7 at lea/ #h p]c5t dur+ ! fir/ plan ye> foll[+ ! plan ye> describ$ 9 clause 7i71 & 7iii7 at lea/ #aj p]c5t dur+ any subsequ5t plan ye>4 7,d7 ,mat*+ contributions 7i7 ,9 g5]al ,= purposes ( ?is p>agraph1 an arrangem5t %all be treat$ z hav+ met ! requirem5ts ( p>agraph 7#ac77;,d77i7 if & only if ! employ] makes mat*+ contributions on behalf ( ea* employee :o is n a highly comp5sat$ employee 9 an am\nt equal to ! sum ( #ej p]c5t ( ! elective contributions ( ! employee to ! ext5t t su* contributions d n exce$ #b p]c5t ( comp5sation plus #cj p]c5t ( s mu* ( su* contributions z exce$ #b p]c5t b d n exce$ #aj p]c5t ( comp5sation4 7ii7 ,application ( rules = mat*+ contributions ,! rules ( clause 7ii7 ( p>agraph 7#ab77;,b7 & clauses 7iii7 & 7iv7 ( p>agraph 7#ac77;,d7 %all apply = purposes ( clause 7i7 b ! rule ( clause 7iii7 ( p>agraph 7#ab77;,b7 %all n apply = su* purposes4 ,! rate ( mat*+ contribution = ea* increm5tal def]ral mu/ be at lea/ z high z ! rate specifi$ 9 clause 7i71 & may be high]1 s long z su* rate does n increase z an employee's rate ( elective contributions increases4 4 7b7 ,mat*+ contributions & employee contributions ,subsection 7m7 ( section #dja ( su* ,code is am5d$ by r$esignat+ p>agraph 7#ac7 z p>agraph 7#ad7 & by add+ aft] p>agraph 7#ab7 ! foll[+ new p>agraph3 7#ac7 ,alt]native me?od = secure def]ral arraignm5ts ,a def9$ contribution plan %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#b7 ) respect to mat*+ contributions & employee contributions if ! plan-- 7,a7 is a secure def]ral arrangem5t 7z def9$ 9 subsection 7k77#ad771 7,b7 meets ! requirem5ts ( clauses 7ii7 & 7iii7 ( p>agraph 7#aa77;,b71 & 7,c7 provides t mat*+ contributions on behalf ( any employee may n be made ) respect to an employee's contributions or elective def]rals 9 excess ( #aj p]c5t ( ! employee's comp5sation4 4 7c7 ,tax cr$it 7#a7 ,9 g5]al ,subp>t 7,d7 ( "p ,,iv ( sub*apt] ,a ( ,*apt] #a ( subtitle ,a ( su* ,code is am5d$ by add+ at ! end !re( ! foll[+ new section3 #de,s4 ,secure def]ral arrangem5ts 7a7 ,9 g5]al ,= purposes ( section #ch1 9 ! case ( an eligible employ] ma9ta9+ a qualifi$ employ] plan 7z def9$ 9 clauses 7i7 & 7ii7 ( section #digb7;d77#a77;,a771 ! secure def]ral arrangem5t cr$it det]m9$ "u ?is section = any taxable ye> is an am\nt equal to #aj p]c5t ( all contributions "u a secure def]ral arrangem5t 7z def9$ 9 section #dja7k77#ad77 made dur+ ! plan ye> end+ ) or )9 ! taxable ye> ( ! eligible employ] by or on behalf ( employees o!r ?an highly comp5sat$ employees 7z def9$ 9 section #dad7q774 7b7 ,doll> limitation ,! am\nt ( ! cr$it det]m9$ "u ?is section = any taxable ye> %all n exce$-- 7#a7 #aj1jjj = ! fir/ cr$it ye> & ea* ( ! #b taxable ye>s imm$iately foll[+ ! fir/ cr$it ye>1 & 7#b7 z]o = any o!r taxable ye>4 7c7 ,fir/ cr$it ye> ,! t]m fir/ cr$it ye> means-- 7#a7 ! taxable ye> ( ! eligible employ] ) :i* or )9 :i* ends ! fir/ plan ye> dur+ :i* ! secure def]ral arrangem5t 0 9 effect = ! entire ye>1 or 7#b7 at ! election ( ! eligible employ]1 ! taxable ye> prec$+ ! taxable ye> ref]r$ to 9 p>agraph 7#a74 7d7 ,def9ition & special rules 7#a7 ,eligible employ] ,! t]m eligible employ] has ! mean+ giv5 su* t]m by section #djh7p77#b77;,c77i74 7#b7 ,aggregation ,all p]sons treat$ z a s+le employ] "u subsection 7a7 or 7b7 ( section #eb1 or subsection 7m7 or 7o7 ( section #dad1 %all be treat$ z "o p]son4 ,all qualifi$ employ] plans ( an eligible employ] %all be treat$ z #a qualifi$ employ] plan4 7#c7 ,disall[ance ( d$uction ,no d$uction %all be all[$ = t portion ( ! contribution = ! taxable ye> :i* is equal to ! cr$it det]m9$ "u subsection 7a74 7#d7 ,election n to claim cr$it ,?is section %all n apply to a taxpay] = any taxable ye> if su* taxpay] elects to h ?is section n apply = su* taxable ye>4 ,any su* taxable ye> %all n be tak5 into acc\nt "u subsection 7b74 4 7#b7 ,con=m+ am5dm5ts 7,a7 ,g5]al bus9ess cr$it ,subsection 7b7 ( section #ch ( su* ,code 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[+3 7#cg7 ! secure def]ral arrangem5t cr$it det]m9$ "u section #de,s4 4 7,b7 ,cr$it cross-ref]5ces 7i7 ,subsection 7k7 ( section #dja ( su* ,code1 z am5d$ by subsection 7a71 is am5d$ at ! end !re( to add ! foll[+ new p>agraph3 7#ae7 ,secure def]ral arrangem5t cr$it ,= a g5]al bus9ess cr$it ) respect to secure def]ral arrangem5ts1 see section #de,s4 4 7ii7 ,subsection 7m7 ( section #dja ( su* ,code1 z am5d$ by subsection 7b71 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ae7 ,secure def]ral arrangem5t cr$it ,= a g5]al bus9ess cr$it ) respect to secure def]ral arrangem5ts1 see section #de,s4 4 7d7 ,facilitat+ qualifi$ automatic contribution arrangem5ts & secure def]ral arraignm5ts ,by no lat] ?an ! date t is twelve mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all prescribe rules t facilitate ! adm9i/ration ( qualifi$ automatic contribution arrangem5ts 7z def9$ 9 section #dja7k77#ac7 ( ! ,int]nal ,rev5ue ,code ( #aihf7 & secure def]ral arrangem5ts 7z def9$ 9 section #dja7k77#ad7 ( su* ,code74 ,su* rules %all-- 7#a7 ,cl>ify1 simplify1 & provide safe h>bors ) respect to ! application ( ! notice requirem5ts describ$ 9 section #dja7k77#ac77;,e7 ( su* ,code1 especially 9 cases :]e-- 7,a7 employees become eligible "u su* arrangem5ts ^u becom+ employ$ or %ortly !reaft]1 or 7,b7 ! employ] has employees subject to diff]5t payroll & adm9i/rative sy/ems4 7#b7 ,cl>ify1 simplify & provide safe h>bors ) respect to ! tim+ ( ! increases 9 ! qualifi$ p]c5tage describ$ 9 subclauses 7,,ii71 7,,iii71 & 7,,iv7 ( section #dja7k77#ac77;,c77iii7 ( su* ,code & 9 clauses 7ii7 & 7iii7 ( section #dja7k77#ad77;,c7 ( su* ,code1 especially 9 cases :]e ! employ] has employees subject to diff]5t payroll & adm9i/rative sy/ems4 7e7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by subsections 7a7 & 7b7 %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 7#b7 ,tax cr$it ,! am5dm5ts made by subsection 7c7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #ajc4 ,qualifi$ ca% or def]r$ arrangem5ts mu/ all[ long-t]m employees work+ m ?an #ejj b less ?an #a1jjj h\rs p] ye> to p>ticipate 7a7 ,p>ticipation requirem5t 7#a7 ,9 g5]al ,subp>agraph 7,d7 ( section #dja7k77#b7 7def9+ qualifi$ ca% or def]r$ arrangem5t7 is am5d$ to read z foll[s3 7,d7 :i* does n require1 z a condition ( p>ticipation 9 ! arrangem5t1 t an employee complete a p]iod ( s]vice ) ! employ] 7or employ]s7 ma9ta9+ ! plan ext5d+ beyond ! close ( ! e>li] (-- 7i7 ! p]iod p]mitt$ "u section #daj7;a77#a7 7det]m9$ )\t reg>d to subp>agraph 7,b77i7 !re(71 or 7ii7 subject to ! provisions ( p>agraph 7#ad71 ! fir/ p]iod ( #c consecutive #ab-mon? p]iods dur+ ea* ( :i* ! employee has at lea/ #ejj h\rs ( s]vice4 4 7#b7 ,special rules ,section #dja7k7 7relat+ to ca% or def]r$ arrangem5ts7 7z am5d$ by section #ajb7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,special rules = p>ticipation requirem5t = long-t]m1 "p-"t work]s ,= purposes ( p>agraph 7#b77;,d77ii7-- 7,a7 ,age requirem5t mu/ be met ,p>agraph 7#b77;,d77ii7 %all n apply to an employee unless ! employee has met ! requirem5t ( section #daj7;a77#a77;,a77i7 by ! close ( ! la/ ( ! #ab-mon? p]iods describ$ 9 su* p>agraph4 7,b7 ,nondiscrim9ation & top-heavy rules n to apply 7i7 ,nondiscrim9ation rules ,9 ! case ( employees :o are eligible to p>ticipate 9 ! arrangem5t solely by reason ( p>agraph 7#b77;,d77ii7-- 7,i7 not)/&+ subsection 7a77#d71 an employ] %all n be requir$ to make nonelective or mat*+ contributions on behalf ( su* employees ev5 if su* contributions are made on behalf ( o!r employees eligible to p>ticipate 9 ! arrangem5t1 & 7,,ii7 an employ] may elect to exclude su* employees f ! application ( subsection 7a77#d71 p>agraph 7#c71 subsection 7m77#b71 & section #daj7;b74 7ii7 ,top-heavy rules ,an employ] may elect to exclude all employees :o are eligible to p>ticipate 9 a plan ma9ta9$ by ! employ] solely by reason ( p>agraph 7#b77;,d77ii7 f ! application ( ! ve/+ & b5efit requirem5ts "u subsections 7b7 & 7c7 ( section #daf4 7iii7 ,ve/+ ,= purposes ( det]m9+ :e!r an employee describ$ 9 clause 7i7 has a non=feitable "r to employ] contributions 7o!r ?an contributions describ$ 9 p>agraph 7#c77;,d77i77 "u ! arrangem5t1 ea* #ab-mon? p]iod = :i* ! employee has at lea/ #ejj h\rs ( s]vice %all be treat$ z a ye> ( s]vice4 7iv7 ,employees :o become full-"t employees ,?is subp>agraph %all cease to apply to any employee z ( ! fir/ plan ye> beg9n+ aft] ! plan ye> 9 :i* ! employee meets ! requirem5ts ( section #daj7;a77#a77;,a77ii7 )\t reg>d to p>agraph 7#b77;,d77ii74 7,c7 ,exception = employees "u collectively b>ga9$ plans1 etc ,p>agraph 7#b77;,d77ii7 %all n apply to employees describ$ 9 section #daj7;b77#c74 7,d7 ,special rules 7i7 ,"t ( p>ticipation ,! rules ( section #daj7;a77#d7 %all apply to an employee eligible to p>ticipate 9 an arrangem5t solely by reason ( p>agraph 7#b77;,d77ii74 7ii7 #ab-mon? p]iods #ab-mon? p]iods %all be det]m9$ 9 ! same mann] z "u ! la/ s5t5ce ( section #daj7;a77#c77;,a74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac1 except t1 = purposes ( section #dja7k77#b77;,d77ii7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z add$ by su* am5dm5ts71 #ab-mon? p]iods beg9n+ be=e ,janu>y #a1 #bjad1 %all n be tak5 into acc\nt4 #ajd4 ,sep>ate application ( top heavy rules to def9$ contribution plans cov]+ "p-"t employees 7a7 ,9 g5]al ,p>agraph 7#b7 ( section #daf7;c7 is am5d$ by add+ at ! end ! foll[+3 7,c7 ,sep>ate application to employees n meet+ age & s]vice requirem5ts ,if employees n meet+ ! age or s]vice requirem5ts ( section #daj7;a77#a7 7)\t reg>d to subp>agraph 7,b7 !re(7 are cov]$ "u a plan ( ! employ] :i* meets ! requirem5ts ( p>agraphs 7,a7 & 7,b7 sep>ately ) respect to su* employees1 su* employees may be exclud$ f consid]ation 9 det]m9+ :e!r any plan ( ! employ] meets ! requirem5ts ( subp>agraphs 7,a7 & 7,b74 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to plan ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 #aje4 ,modification ( sav]'s cr$it 7a7 #ej p]c5t cr$it = all taxpay]s3 expansion ( phase\t ranges ,subsection 7b7 ( section #be;,b is am5d$ to read z foll[s3 7b7 ,applicable p]c5tage ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,except z provid$ 9 p>agraph 7#b71 ! applicable p]c5tage is #ej p]c5t4 7#b7 ,phase\t ,! p]c5tage "u p>agraph 7#a7 %all be r$uc$ 7b n bel[ z]o7 by ! numb] ( p]c5tage po9ts :i* be>s ! same ratio to #ej p]c5tage po9ts z-- 7,a7 ! excess (-- 7i7 ! taxpay]'s adju/$ gross income = su* taxable ye>1 ov] 7ii7 ! applicable doll> am\nt1 be>s to 7,b7 ! phase\t range4 ,if any r$uction det]m9$ "u ?is p>agraph is n a :ole p]c5tage po9t1 su* r$uction %all be r\nd$ to ! ne>e/ :ole p]c5tage po9t4 7#c7 ,applicable doll> am\nt2 phase\t range 7,a7 ,jo9t returns ,except z provid$ 9 subp>agraph 7,b7-- 7i7 ! applicable doll> am\nt is #fe1jjj1 & 7ii7 ! phase\t range is #bj1jjj4 7,b7 ,o!r returns ,9 ! case (-- 7i7 a head ( a h\sehold 7z def9$ 9 section #b7;b771 ! applicable doll> am\nt & ! phase\t range %all be #c_/d ( ! am\nts applicable "u subp>agraph 7,a7 7z adju/$ "u p>agraph 7#d771 & 7ii7 any taxpay] :o is n fil+ a jo9t return & :o is n a head ( a h\sehold 7z s def9$71 ! applicable doll> am\nt & ! phase\t range %all be #a_/b ( ! am\nts applicable "u subp>agraph 7,a7 7z s adju/$74 7#d7 ,inflation adju/m5t ( applicable doll> am\nt ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjad1 ! doll> am\nt 9 p>agraph 7#c77;,a77i7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjac = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 ,any increase det]m9$ "u ! prec$+ s5t5ce %all be r\nd$ to ! ne>e/ multiple ( #ejj4 4 7b7 ,cr$it made refundable2 mat*+ contributions 7#a7 ,cr$it made refundable ,! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by mov+ section #be;,b to subp>t ,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code 7relat+ to refundable cr$its71 by ins]t+ section #be;,b aft] section #cf;,b1 & by r$esignat+ section #be;,b z section #cf;,c4 7#b7 ,mat*+ contributions ,section #cf;,c1 z r$esignat$ by p>agraph 7#a71 is am5d$ by add+ at ! end ! foll[+3 7g7 ,mat*+ contributions 7#a7 ,9 g5]al ,! cr$it all[$ to an eligible individual "u ?is section = any taxable ye> %all be twice ! cr$it :i* w\ld 7b = ?is subsection7 be all[$ if-- 7,a7 ! individual cons5ts to ! application ( p>agraph 7#b71 & 7,b7 a designation by su* individual is 9 effect = su* ye> "u p>agraph 7#c74 7#b7 ,cr$it paid into designat$ retirem5t acc\nt ,any cr$it "u ?is section = any taxable ye> %all be paid by ! ,secret>y into ! designat$ retirem5t acc\nt ( ! individual = su* ye>4 ,! am\nt payable "u ! prec$+ s5t5ce %all be subject to ! r$uctions "u section #fdjb 9 ! same mann] z if su* am\nt 7 an ov]paym5t4 ,! am\nt s paid %all be treat$ z refund$ to su* individual4 7#c7 ,designat$ retirem5t acc\nt ,= purposes ( ?is subsection1 ! t]m designat$ retirem5t acc\nt means any acc\nt or plan-- 7,a7 ( a type to :i* qualifi$ retirem5t sav+s contributions may be made1 7,b7 :i* is = su* individual's b5efit1 & 7,c7 :i* is designat$ by su* individual 79 su* =m & mann] z ! ,secret>y may provide7 on ! return ( tax = ! taxable ye>4 7#d7 ,treatm5t ( mat*+ contributions ,9 ! case ( an am\nt paid "u p>agraph 7#b7 into a designat$ retirem5t acc\nt-- 7,a7 any doll> limitation o!rwise applicable to ! am\nt ( contributions or def]rals to su* acc\nt %all be increas$ by ! am\nt s paid1 7,b7 ! individual's basis 9 su* acc\nt %all n be increas$ by reason ( ! am\nt s paid1 & 7,c7 su* am\nt %all be treat$ z an employ] contribution = ! plan ye> 9 :i* su* am\nt is paid = purposes (-- 7i7 section #dja7k77#c71 & 7ii7 section #djh7k77#f77;,a77iii74 7#e7 ,regulations ,! ,secret>y %all prescribe su* regulations or o!r guidance z may be necess>y to address situations "u :i* ! ,secret>y is n able to make a paym5t to a designat$ retirem5t acc\nt ( an individual1 includ+ a plan ( an employ] = :i* ! individual no long] works & to an acc\nt t does n exi/4 4 7#c7 ,con=m+ am5dm5ts 7,a7 ,section #fbaa7;b77#d77;,a7 is am5d$ by ins]t+ #cf;,c1 aft] #cf;,b14 7,b7 ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a is am5d$ by /rik+ ! item relat+ to section #be;,b4 7,c7 ,! table ( sections = subp>t ,c ( su* "p is am5d$ by add+ at ! end ! foll[+ new item3 ,sec4 #cf;,c4 ,elective def]rals & ,,ira contributions by c]ta9 individuals4 4 7,d7 ,section #acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ #cf;,c1 aft] #cf;,b14 7c7 ,maximum contributions ,subsection 7a7 ( section #cf;,c1 z r$esignat$ by subsection 7b71 is am5d$ to read z foll[s3 7a7 ,all[ance ( cr$it 7#a7 ,9 g5]al ,9 ! case ( an eligible individual1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is subtitle = ! taxable ye> an am\nt equal to ! applicable p]c5tage ( s mu* ( ! qualifi$ retirem5t sav+s contributions ( ! eligible individual = ! taxable ye> z d n exce$ ! contribution limit4 7#b7 ,contribution limit ,= purposes ( p>agraph 7#a7-- 7,a7 ,9 g5]al ,except z o!rwise provid$ 9 ?is p>agraph1 ! contribution limit is #ejj 7#a1ejj = taxable ye>s beg9n+ aft] #bjbc74 7,b7 ,annual increases to rea* #a1ejj ,9 ! case ( taxable ye>s beg9n+ 9 a cal5d> ye> aft] #bjac & be=e #bjbd1 ! contribution limit %all be ! sum (-- 7i7 ! contribution limit = taxable ye>s beg9n+ 9 ! prec$+ cal5d> ye> 7z increas$ "u ?is subp>agraph71 & 7ii7 #ajj4 7,c7 ,inflation adju/m5t ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjbc1 ! #a1ejj am\nt 9 subp>agraph 7,a7 %all be increas$ by an am\nt equal to-- 7i7 su* doll> am\nt1 multipli$ by 7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjbb = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 ,any increase det]m9$ "u ! prec$+ s5t5ce %all be r\nd$ to ! ne>e/ multiple ( #ej4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #ajf4 ,retirem5t h&book & retirem5t read9ess *eckli/ 7a7 ,9 g5]al ,section #gjd ( ! ,social ,security ,act is am5d$ by add+ at ! end ! foll[+ new subsection3 7f7 ,retirem5t in=mation 7#a7 ,9 g5]al ,! ,commission]1 9 consultation ) ! ,social ,security ,advisory ,bo>d1 %all prep>e-- 7,a7 ! f9ancial ref]5ce h&book describ$ 9 p>agraph 7#b71 & 7,b7 ! retirem5t read9ess *eckli/ describ$ 9 p>agraph 7#c74 7#b7 ,f9ancial ref]5ce h&book ,! h&book describ$ 9 ?is p>agraph is a pamphlet :i*-- 7,a7 includes def9itions ( basic f9ancial t]ms1 7,b7 conta9s a li/+ ( f9ancial issues & problems fac+ individuals :o are retir+ & explanations ( me?ods ( deal+ ) ! issues & problems1 & 7,c7 is 9 a =m readily und]/&able by ! av]age retiree4 7#c7 ,read9ess *eckli/ ,! *eckli/ describ$ 9 ?is p>agraph is a li/ ( que/ions t individuals ne$ to consid] 9 prep>ation = retirem5t1 includ+ ! foll[+3 7,a7 ,:at annual income w ! individual ne$ 9 retirem5t8 7,b7 ,h[ _m ye>s w ! individual live 9 retirem5t8 7,c7 ,:at w be ! co/ ( ,m$ic>e premiums8 7,d7 ,:at w be ! co/ ( insurance necess>y to supplem5t ,m$ic>e8 7,e7 ,h[ w sav+s be inve/$ 9 retirem5t8 7,f7 ,h[ w taxes affect y\r retirem5t income8 ,! *eckli/ w include answ]s to ! que/ions or directions z to :]e in=mation is available to answ] ! que/ions4 ,all in=mation %all be 9 a =m readily und]/&able to ! av]age recipi5t ( ! *eckli/4 7#d7 ,revisions ,! ,commission] %all p]iodically revise & update ! h&book & *eckli/ prep>$ "u ?is subsection4 7#e7 ,di/ribution ( mat]ials 7,a7 ,h&book ,! f9ancial ref]5ce h&book describ$ 9 p>agraph 7#b7 %all be includ$ ) mat]ials provid$ to an individual :5 ! individual fir/ applies = b5efits "u title ,,ii & su* o!r times z ! ,commission] det]m9es appropriate4 7,b7 ,*eckli/ ,! retirem5t read9ess *eckli/ describ$ 9 p>agraph 7#c7 %all be includ$ ) an individual's annual social security acc\nt /atem5t provid$ "u section #aadc4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act1 b ! h&books & *eckli/s requir$ to be provid$ by su* am5dm5t %all be provid$ on or aft] ,janu>y #a1 #bjad 7or su* e>li] date z ! ,commission] ( ,social ,security may provide74 #ajg4 ,additional "t to adopt a qualifi$ plan 7a7 ,9 g5]al ,subsection 7a7 ( section #dja is am5d$ by ins]t+ aft] p>agraph 7#cg7 ! foll[+ new p>agraph3 7#ch7 ,! adoption ( a plan by ! applicable date %all n cause a plan to fail to meet ! requirem5ts ( ?is section = a plan ye>4 ,= purposes ( ! prec$+ s5t5ce1 ! t]m applicable date means ! due date 7includ+ ext5sions7 = fil+ ! ,f$]al income tax return = ! employ]'s taxable ye> 9 :i* ends ! plan ye> = :i* ! plan is effective4 ,a plan adopt$ 9 accordance ) ?is p>agraph w be treat$ z e/abli%$ by ! end ( ! employ]'s taxable ye> = purposes ( apply+ section #djd7;a74 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 ,,ii ,enc\rag+ ,small ,bus9esses to ,ent] & ,rema9 9 ! ,employ] ,retirem5t ,plan ,sy/em #bja4 ,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 #e1jjj1 & 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bjb4 ,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 ,,iii ,pres]vation ( ,income #cja4 ,/udy ( application ( sp\sal cons5t rules to def9$ contribution plans 7a7 ,/udy ,! ,gov]nm5t ,acc\ntability ,(fice %all conduct a /udy ( ! feasibility & desirability ( ext5d+ ! application ( ! requirem5ts ( section #bje ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd & sections #dja7;a77#aa7 & #dag ( ! ,int]nal ,rev5ue ,code ( #aihf 7relat+ to sp\sal cons5t requirem5ts7 to def9$ contribution plans to :i* su* requirem5ts d n apply4 ,su* /udy %all include consid]ation ( any modifications ( su* requirem5ts t are necess>y to apply su* requirem5ts to su* plans4 7b7 ,report ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,gov]nm5t ,acc\ntability ,(fice %all report ! results ( ! /udy1 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 #cjb4 ,adm9i/ration ( jo9t & survivor annuity requirem5ts 7a7 ,am5dm5ts to ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#a7 ,9 g5]al ,section #djb7;c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajb7;c77 is am5d$-- 7,a7 9 p>agraph 7#b7 by /rik+ or at ! end1 7,b7 9 p>agraph 7#c7 by /rik+ ! p]iod at ! end & ins]t+ 2 or1 & 7,c7 by add+ at ! end ! foll[+ new p>agraph3 7#d7 t a nam$ fiduci>y1 or a fiduci>y designat$ by a nam$ fiduci>y pursuant to a plan proc$ure describ$ 9 section #dje7;e71 may appo9t an annuity adm9i/rator or adm9i/rators ) responsibility = adm9i/ration ( an individual acc\nt plan 9 accordance ) ! requirem5ts ( section #bje & paym5t ( any annuity requir$ !reund]4 4 7#b7 ,section #dje ( su* ,act 7#bi ,u4,s4,c4 #aaje7 is am5d$ by add+ at ! end ! foll[+ new subsection3 7e7 ,annuity ,adm9i/rator ,if an annuity adm9i/rator or adm9i/rators h be5 appo9t$ "u section #djb7;c77#d7 & su* entity ackn[l$ges 9 writ+ t !y are ! annuity adm9i/rator & a fiduci>y "u ! plan ) respect to _! appo9t$ duties1 !n nei!r ! nam$ fiduci>y nor any appo9t+ fiduci>y %all be liable = any act or omission ( ! annuity adm9i/rator except to ! ext5t t-- 7#a7 ! nam$ fiduci>y or appo9t+ fiduci>y violat$ section #djd7;a77#a7-- 7,a7 ) respect to su* allocation or designation1 or 7,b7 9 cont9u+ ! allocation or designation1 7#b7 ! nam$ fiduci>y or appo9t+ fiduci>y w\ld o!rwise be liable 9 accordance ) subsection 7a71 or 7#c7 ! entity appo9t$ to be ! annuity adm9i/rator is nei!r an insurance company nor approv$ to be an annuity adm9i/rator by ! ,secret>y4 4 7b7 ,effective date ,! am5dm5ts made by subsection 7a7 %all apply z ( ! date ( enactm5t ( ?is ,act4 #cjc4 ,availability ( di/ribution options 7a7 ,lifetime income inve/m5ts ,by ! date t is "o ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all issue f9al regulations "u :i* x is cl>ifi$ t any specifi$ age or s]vice condition 7or comb9ation ( age & s]vice conditions7 ) respect to a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii77 "u a def9$ contribution plan %all be disreg>d$ 9 det]m9+ :e!r su* lifetime income inve/m5t is curr5tly available to an employee = purposes ( ,treasury ,regulation section #a4dja7;a77#d7-d7;b7 7or any successor provision74 7b7 ,en=cem5t ,z ( ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all adm9i/] & en=ce ! law 9 accordance ) subsection 7a7 ) respect to plan ye>s beg9n+ be=e1 on1 or aft] ! date ( enactm5t ( ?is ,act4 7c7 ,effective date ,?is section %all take effect z ( ! date ( enactm5t ( ?is ,act4 #cjd4 ,rollov] ( insurance contracts to ,i,r,as 7a7 ,9 g5]al ,section #djh7;a77#c7 is am5d$ by ins]t+ o!r ?an insurance contracts t 7 roll$ ov] to an ,,ira f a qualifi$ retirem5t plan describ$ 9 clause 7iii71 7iv71 or 7vi7 ( section #djb7;c77#h77;,b7 provid$ t su* contracts provide only incid5tal dea? b5efits tak+ into acc\nt bo? ! ,,ira & ! qualifi$ retirem5t plan aft] contract4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #cje4 ,portability ( lifetime income options 7a7 ,9 g5]al ,subsection 7a7 ( section #dja is am5d$ by ins]t+ aft] p>agraph 7#cg7 ! foll[+ new p>agraph3 7#ch7 ,portability ( lifetime income 7,a7 ,9 g5]al ,a tru/ =m+ "p ( a def9$ contribution plan %all n be treat$ z fail+ to con/itute a qualifi$ tru/ "u ?is section solely by reason ( all[+-- 7i7 qualifi$ di/ributions ( a lifetime income inve/m5t1 or 7ii7 di/ributions ( a lifetime income inve/m5t 9 ! =m ( a qualifi$ plan di/ribution annuity contract1 on or aft] ! date t is #ij days prior to ! date on :i* su* lifetime income inve/m5t is no long] au?oriz$ to be held z an inve/m5t option "u ! plan except z may o!rwise be provid$ by regulations4 7,b7 ,def9itions ,= purposes ( ?is subsection-- 7i7 ! t]m qualifi$ di/ribution means a direct tru/ee-to-tru/ee transf] to an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b771 z describ$ 9 section #dja7;a77#ca77;,a71 7ii7 ! t]m lifetime income inve/m5t means an inve/m5t option t is design$ to provide an employee ) election rights-- 7,i7 t are n uni=mly available ) respect to o!r inve/m5t options "u ! plan1 & 7,,ii7 t are to a lifetime income feature available ?r\gh a contract or o!r arrangem5t (f]$ "u ! plan or "u ano!r eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b77 ?r\gh a direct tru/ee-to-tru/ee transf] to su* o!r eligible retirem5t plan "u section #dja7;a77#ca77;,a71 7iii7 ! t]m lifetime income feature means-- 7,i7 a feature t gu>antees a m9imum level ( income annually 7or m frequ5tly7 = at lea/ ! rema9d] ( ! life ( ! employee or ! jo9t lives ( ! employee & ! employee's designat$ b5efici>y1 or 7,,ii7 an annuity payable on behalf ( ! employee "u :i* paym5ts are made 9 sub/antially equal p]iodic paym5ts 7n less frequ5tly ?an annually7 ov] ! life ( ! employee or ! jo9t lives ( ! employee & ! employee's designat$ b5efici>y1 tak+ into acc\nt ! rules ( clause 7iii7 ( section #dja7;a77#i77;,i71 & 7iv7 ! t]m qualifi$ plan di/ribution annuity contract means an annuity contract pur*as$ = a p>ticipant & di/ribut$ to ! p>ticipant by a plan describ$ 9 subp>agraph 7,b7 ( section #djb7;c77#h7 7)\t reg>d to clauses 7i7 & 7ii7 !re(74 4 7b7 ,ca% or def]r$ arrangem5t ,clause 7i7 ( section #dja7k77#b77;,b7 is am5d$ by /rik+ or at ! end ( subclause 7,,iv71 by /rik+ & at ! end ( subclause 7,v7 & ins]t+ or1 & by add+ at ! end ( clause 7i7 ! foll[+3 7,,vi7 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii771 ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! plan1 provid$ t any di/ribution "u ?is subclause mu/ be 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 section #dja7;a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 section #dja7;a77#ch77;,b77iv771 & 4 7c7 ,section #djc7;b7 plans 7#a7 ,annuity contracts ,p>agraph 7#aa7 ( section #djc7;b7 is am5d$ by /rik+ or at ! end ( subp>agraph 7,b71 by /rik+ ! p]iod at ! end ( subp>agraph 7,c71 & by ins]t+ 1 or1 & by add+ at ! end ! foll[+3 7,d7 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii771 ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! plan1 provid$ t any di/ribution "u ?is subp>agraph mu/ be 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 section #dja7;a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 section #dja7;a77#ch77;,b77iv774 4 7#b7 ,cu/odial acc\nts ,clause 7ii7 ( section #djc7;b77#g77;,a7 is am5d$ to read z foll[s3 7ii7 "u ! cu/odial acc\nt1 no su* am\nts may be paid or made available to any di/ributee 7unless su* am\nt is a di/ribution to :i* section #gb7t77#b77;,g7 applies7 be=e-- 7,i7 ! employee dies1 7,,ii7 ! employee atta9s age #ei1 7,,iii7 ! employee has a sev]ance f employm5t1 7,,iv7 ! employee becomes disabl$ 7)9 ! mean+ ( section #gb7m77#g771 7,v7 9 ! case ( contributions made pursuant to a sal>y r$uction agreem5t 7)9 ! mean+ ( section #caba7;a77#e77;,d771 ! employee enc\nt]s f9ancial h>d%ip1 or 7,,vi7 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii771 ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! plan1 provid$ t any di/ribution "u ?is subp>agraph mu/ be 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 section #dja7;a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 section #dja7;a77#ch77;,b77iv774 4 7d7 ,eligible def]r$ comp5sation plans ,subp>agraph 7,a7 ( section #deg7;d77#a7 is am5d$ by /rik+ or at ! end ( clause 7ii71 by ins]t+ or at ! end ( clause 7iii71 & by add+ aft] clause 7iii7 ! foll[+3 7iv7 ) respect to am\nts inve/$ 9 a lifetime income inve/m5t 7z def9$ 9 section #dja7;a77#ch77;,b77ii771 ! date t is #ij days prior to ! date t su* lifetime income inve/m5t may no long] be held z an inve/m5t option "u ! plan1 provid$ t any di/ribution "u ?is subp>agraph mu/ be 9 ! =m ( a qualifi$ di/ribution 7z def9$ 9 section #dja7;a77#ch77;,b77i77 or a qualifi$ plan di/ribution annuity contract 7z def9$ 9 section #dja7;a77#ch77;,b77iv771 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #cjf4 ,lo/ ,p5sion ,plan ,regi/ry 7a7 ,9 g5]al ,subtitle ,c ( title ,,iv ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #acda et seq47 is am5d$ by add+ at ! end ! foll[+3 #djea4 ,lo/ ,p5sion ,plan ,regi/ry ,no lat] ?an ,decemb] #ca1 #bjad1 ! corporation %all e/abli% a database to be kn[n z ! ,lo/ ,p5sion ,plan ,regi/ry4 ,! corporation %all-- 7#a7 ensure t ! database conta9s a record ( ! in=mation describ$ 9 section #fjeg7;b7 ( ! ,int]nal ,rev5ue ,code ( #aihf t is transmitt$ by ! ,secret>y ( ! ,treasury to ! corporation pursuant to section #fjeg7;d7 ( su* ,code1 & 7#b7 po/ su* record on ! corporation's website 9 a mann] calculat$ to in=m p>ticipants & b5efici>ies ( ! "n1 location1 & contact in=mation = any plan t has *ang$ its id5tity or /atus4 4 7b7 ,am5dm5t to ! ,int]nal ,rev5ue ,code ,section #fjeg7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ & to ! ,p5sion ,b5efit ,gu>anty ,corporation be=e ! p]iod at ! end4 ,,iv ,simplification & ,cl>ification ( ,qualifi$ ,retirem5t ,plan ,rules #dja4 ,exception f requir$ di/ributions :]e aggregate retirem5t sav+s d n exce$ #ajj1jjj 7a7 ,9 g5]al ,section #dja7;a77#i7 7relat+ to requir$ di/ributions7 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,i7 ,exception f requir$ m9imum di/ributions dur+ life ( employee or b5efici>y :]e assets d n exce$ #ajj1jjj 7i7 ,9 g5]al ,if1 z ( a measurem5t date1 ! aggregate balance to ! cr$it ( an employee "u all applicable eligible retirem5t plans does n exce$ #ajj1jjj1 !n ! requirem5ts ( subp>agraph 7,a7 %all n apply to ! employee dur+ any succe$+ cal5d> ye>4 ,9 addition1 if1 z ( a measurem5t date1 ! aggregate balance to ! cr$it ( an employee "u all applicable eligible retirem5t plans does n exce$ #ajj1jjj1 !n ! requirem5ts ( subp>agraph 7,b7 %all n apply dur+ any succe$+ cal5d> ye> to ! employee's designat$ b5efici>y ) respect to ! designat$ b5efici>y's int]e/ 9 ! balance to ! cr$it ( ! deceas$ employee4 7ii7 ,applicable eligible retirem5t plan ,= purposes ( ?is subp>agraph1 ! t]m applicable eligible retirem5t plan means an eligible retirem5t plan 7z def9$ 9 section #djb7;c77#h77;,b77 & any o!r plan1 contract1 or arrangem5t to :i* ! requirem5ts ( ?is p>agraph apply4 7iii7 ,special rule = b5efits paid z a life annuity f def9$ b5efit plan ,9 det]m9+ ! aggregate balance "u clause 7i71 !re %all n be tak5 into acc\nt ! value ( any b5efits "u a def9$ b5efit plan t1 on ! measurem5t date1 are be+ paid z a life annuity4 7iv7 ,measurem5t date 7,i7 ,initial measurem5t dates ,! initial measurem5t date = an individual is ! la/ day ( ! cal5d> ye> prec$+ ! e>li] (-- 7aa7 ! cal5d> ye> 9 :i* ! employee atta9s age #gj1 or 7bb7 ! cal5d> ye> 9 :i* ! employee dies4 7,,ii7 ,subsequ5t measurem5t dates ,if1 9 a cal5d> ye>1 an individual :o is exempt$ f ! requirem5ts ( ?is p>agraph pursuant to clause 7i7 receives contributions1 rollov]s1 or transf]s ( am\nts1 or accrues additional b5efits "u a def9$ b5efit plan1 t 7 n previ\sly tak5 into acc\nt 9 apply+ ?is subp>agraph1 !n ! la/ day ( t cal5d> ye> %all be a new measurem5t date & a new det]m9ation %all be made z to :e!r clause 7i7 applies4 7v7 ,det]m9+ value ( def9$ b5efit plan b5efits ,! value ( def9$ b5efit plan b5efits is det]m9$ 9 accordance ) ! applicable int]e/ rate & applicable mortality rate assumptions "u section #dag7;e71 except t ! value %all be equal to ! am\nt ( ! s+le sum paym5t payable to ! ext5t available "u ! plan4 7vi7 ,phase-9 ( m9imum di/ribution requirem5ts ,= an individual ^: aggregate balance exce$s ! exemption level 9 clause 7i7 by less ?an #aj1jjj1 requir$ m9imum di/ribution requirem5ts w phase 9 bas$ on ! ratio (-- 7,i7 ! am\nt by :i* ! aggregate balance exce$s ! exemption level1 to 7,,ii7 #aj1jjj4 7vii7 ,co/ ( liv+ adju/m5ts ,! ,secret>y %all adju/ annually ! #ajj1jjj am\nt specifi$ 9 clause 7i7 = increases 9 ! co/-(-liv+ at ! same "t & 9 ! same mann] z adju/m5ts "u section #dae7;d72 except t ! base p]iod %all be ! cal5d> qu>t] beg9n+ ,july #a1 #bjac1 & any increase :i* is n a multiple ( #e1jjj %all be r\nd$ to ! next l[e/ multiple ( #e1jjj4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to initial measurem5t dates occurr+ on or aft] ,decemb] #ca1 #bjac4 #djb4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em 7a7 ,9 g5]al ,n lat] ?an "o ye> aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all modify ! ,employee ,plans ,compliance ,resolution ,sy/em 7z describ$ 9 ,rev5ue ,proc$ure #bjac-ab7 to a*ieve ! results specifi$ 9 ! succe$+ subsections ( ?is section & to fur!r facilitate corrections & compliance 9 su* o!r means z ! ,secret>y deems appropriate4 7b7 ,loan error 7#a7 ,9 ! case ( plan loan errors = :i* corrections are specifi$ "u ! volunt>y compliance program1 self-correction %all be made available by me?ods applicable to su* loans ?r\gh ! volunt>y compliance program4 7#b7 ,! ,secret>y ( ,labor %all treat any loan error correct$ pursuant to p>agraph 7#a7 z meet+ ! requirem5ts ( ! ,volunt>y ,fiduci>y ,correction ,program ( ! ,dep>tm5t ( ,labor4 7c7 #deg7;b7 plan correction ,! ,secret>y ( ! ,treasury %all update ! ,employee ,plans ,compliance ,resolution ,sy/em to provide ! same type ( compreh5sive correction program t is available "u su* sy/em to retirem5t plans qualifi$ "u section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf to plans ma9ta9$ pursuant to section #deg7;b7 ( su* ,code by an employ] describ$ 9 section #deg7;e77#a77;,a7 ( su* ,code4 7d7 ,,epcrs = ,i,r,as ,! ,secret>y ( ! ,treasury %all exp& ! ,employee ,plans ,compliance ,resolution ,sy/em to all[ cu/odians ( individual retirem5t plans to address inadv]t5t errors = :i* ! own] ( an individual retirem5t plan 0 n at fault1 includ+ 7b n limit$ to7-- 7#a7 waiv]s ( ! excise tax t w\ld o!rwise apply "u section #digd ( ! ,int]nal ,rev5ue ,code ( #aihf1 7#b7 "u ! self-correction compon5t ( ! ,employee ,plans ,compliance ,resolution ,sy/em1 waiv]s ( ! #fj-;day deadl9e = a rollov] :]e ! deadl9e is miss$ = reasons beyond ! reasonable control ( ! acc\nt own]1 & 7#c7 rules p]mitt+ a nonsp\se b5efici>y to return di/ributions to an inh]it$ individual retirem5t plan describ$ 9 section #djh7;d77#c77;,c7 ( ! ,int]nal ,rev5ue ,code ( #aihf 9 a case :]e1 due to an inadv]t5t error by a s]vice provid]1 ! b5efici>y _h reason to believe t ! di/ribution c\ld be roll$ ov] )\t inclusion 9 income ( any "p ( ! di/ribut$ am\nt4 7e7 ,requir$ m9imum di/ribution corrections ,! ,secret>y ( ! ,treasury %all exp& ! ,employee ,plans ,compliance ,resolution ,sy/em to all[ plans to :i* su* sy/em applies & cu/odians ( individual retirem5t plans to self-correct1 )\t an excise tax1 any inadv]t5t errors pursuant to :i* a di/ribution is made no m ?an #ahj days aft] x 0 requir$ to be made4 7f7 ,automatic feature error correction ,9 ord] to promote ! adoption ( automatic enrollm5t & automatic escalation1 ! ,secret>y ( ! ,treasury %all modify ! ,employee ,plans ,compliance ,resolution ,sy/em to e/abli% specific correction me?ods = errors 9 implem5t+ automatic enrollm5t & automatic escalation features4 #djc4 ,use ( =feitures to fund safe h>bor contributions 7a7 ,9 g5]al ,section #dja7k7 7z am5d$ by ?is ,act7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ag7 ,a mat*+ contribution or nonelective contribution describ$ 9 p>agraph 7#c77;,d77ii71 subp>agraph 7,b7 or 7,c7 ( p>agraph 7#ab71 or p>agraph 7#ac77;,d7 %all n fail to satisfy ! def9ition "u su* p>agraph m]ely because ! contribution is fund$ 9 :ole or 9 "p by =feitures4 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to =feitures allocat$ 9 accordance ) section #dja7k77#ad7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7z am5d$ by subsection 7a77 be=e1 on or aft] ! date ( enactm5t ( ?is ,act4 #djd4 ,sub/antial cessation ( op]ations 7a7 ,9 g5]al ,subsection 7e7 ( section #djfb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd is am5d$ by /rik+ ,if an employ] & ins]t+ 7#a7 ,9 ,g5]al4--,if an employ]1 & by add+ at ! end !re( ! foll[+ new p>agraph3 7#b7 ,sub/antial cessation ( op]ations ,an employ] %all n be treat$ z hav+ a cessation describ$ 9 p>agraph 7#a7 unless-- 7,a7 all op]ations at a facility 9 a location are ceas$ &-- 7i7 su* cessation is reasonably expect$ to be p]man5t1 7ii7 no portion ( su* op]ations is mov$ to ano!r facility at a diff]5t location1 7iii7 no portion ( su* op]ations is assum$ or o!rwise transf]r$ to ano!r employ]1 & 7iv7 no o!r op]ations are reasonably expect$ to be ma9ta9$ at su* facility1 & 7,b7 z a result ( ! cessation describ$ 9 subp>agraph 7,a71 m ?an #bj p]c5t ( ! employees ( ! employ] h a t]m9ation ( employm5t t is reasonably expect$ to be p]man5t4 ,= purposes ( ?is subp>agraph1 employees ( ! employ] %all include all employees treat$ z employ$ by a s+le employ] "u sections #baj7;c7 & 7d74 4 7b7 ,direction to ! corporation ,! ,p5sion ,b5efit ,gu>anty ,corporation %all n take any en=cem5t1 adm9i/rative1 or o!r actions pursuant to section #djfb7;e7 ( su* ,act t are inconsi/5t ) subp>agraph 7,a7 ( section #djfb7;e77#b7 ( su* ,act1 z am5d$1 )\t reg>d to :e!r su* actions relate to a cessation or o!r ev5t t occurs be=e or aft] ! date ( enactm5t ( ?is ,act4 7c7 ,effective date ,subsection 7b7 & ! am5dm5t made by subsection 7a7 %all apply z ( ! date ( enactm5t ( ?is ,act4 #dje4 ,*ur* plan cl>ification 7a7 ,application ( controll$ gr\p rules to *ur* plans 7#a7 ,9 g5]al ,section #dad7;c7 is am5d$-- 7,a7 by /rik+ ,= purposes & ins]t+ ! foll[+3 7#a7 ,9 g5]al ,= purposes 1 & 7,b7 by add+ at ! end ! foll[+ new p>agraph3 7#b7 ,*ur* plans 7,a7 ,g5]al ,rule ,except z provid$ 9 subp>agraphs 7,b7 & 7,c71 = purposes ( ?is subsection & subsection 7m71 an organization t is o!rwise eligible to p>ticipate 9 a *ur* plan z def9$ 9 subsection 7e7 %all n be aggregat$ ) ano!r su* organization & treat$ z a s+le employ] ) su* o!r organization unless-- 7i7 "o su* organization provides directly or indirectly at lea/ #hj p]c5t ( ! op]at+ funds = ! o!r organization dur+ ! prec$+ tax ye> ( ! recipi5t organization1 & 7ii7 !re is a degree ( common managem5t or sup]vision betwe5 ! organizations4 ,= purposes ( ?is subp>agraph1 a degree ( common managem5t or sup]vision exi/s only if ! organization provid+ ! op]at+ funds is directly involv$ 9 ! day-to-day op]ations ( ! o!r organization4 7,b7 ,nonqualifi$ ,*ur*-,controll$ ,organizations ,not)/&+ ! provisions ( subp>agraph 7,a71 = purposes ( ?is subsection & subsection 7m71 an organization t is a nonqualifi$ *ur*-controll$ organization %all be aggregat$ ) "o or m o!r nonqualifi$ *ur*-controll$ organizations1 or ) an organization t is n exempt f tax "u section #eja1 & treat$ z a s+le employ] ) su* o!r organizations1 if at lea/ #hj p]c5t ( ! directors or tru/ees ( su* organizations are ei!r repres5tatives (1 or directly or indirectly controll$ by1 ! fir/ organization4 ,= purposes ( ?is subp>agraph1 a nonqualifi$ *ur* controll$ organization %all mean a *ur*-controll$ organization describ$ 9 section #eja7;c77#c7 t is n a qualifi$ *ur*-controll$ organization describ$ 9 section #caba7w77#c77;,b74 7,c7 ,p]missive ,aggregation ,among ,*ur*-,relat$ ,organizations ,organizations describ$ 9 subp>agraph 7,a7 may elect to be treat$ z "u common control = purposes ( ?is subsection4 ,su* election %all be made by ! *ur* or conv5tion or association ( *ur*es ) :i* su* organizations are associat$ )9 ! mean+ ( section #dad7;e77#c77;,d71 or by an organization det]m9$ by su* *ur* or conv5tion or association ( *ur*es to be ! appropriate organization = mak+ su* election4 7,d7 ,p]missive ,disaggregation ( ,*ur*-,relat$ ,organizations ,= purposes ( subp>agraph 7,a7 above1 9 ! case ( a *ur* plan 7z def9$ 9 section #dad7;e771 any employ] may p]missively disaggregate ^? entities t are n *ur*es 7z def9$ 9 section #djc7;b77#ab77;,b77 sep>ately f ^? entities t are *ur*es1 ev5 if su* entities ma9ta9 sep>ate *ur* plans4 7,e7 ,anti-,abuse ,rule ,= purposes ( subp>agraphs 7,a7 & 7,b71 ! anti-abuse rule 9 ,treasury ,regulation section #a4dad7;c7-#e7;f7 %all apply4 4 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply to taxable ye>s beg9n+ be=e1 on1 or aft] ! date ( ! enactm5t ( ?is ,act4 7b7 ,application ( contribution & fund+ limitations to #djc7;b7 gr&fa!r$ def9$ b5efit plans 7#a7 ,9 g5]al ,section #bea7;e77#e7 ( ! ,tax ,equity & ,fiscal ,responsibility ,act ( #aihb 7,public ,law #ig-bdh71 is am5d$-- 7,a7 by /rik+ #djc7;b77#b7 & ins]t+ #djc7;b71 & 7,b7 by ins]t+ be=e ! p]iod at ! end ! foll[+3 1 & %all be subject to ! applicable limitations ( section #dae7;b7 ( su* ,code z if x 7 a def9$ b5efit plan "u section #dja7;a7 ( su* ,code & n ! limitations ( section #dae7;c7 ( su* ,code 7relat+ to limitation = def9$ contribution plans744 7#b7 ,effective date ,! am5dm5ts made by ?is subsection %all apply z if includ$ 9 ! enactm5t ( ! ,tax ,equity & ,fiscal ,responsibility ,act ( #aihb4 7c7 ,automatic enrollm5t by *ur* plans 7#a7 ,9 g5]al ,?is subsection %all sup]s$e any law ( a ,/ate t relates to wage1 sal>y1 or payroll paym5t1 collection1 d$uction1 g>ni%m5t1 assignm5t or )hold+ :i* w\ld directly or indirectly prohibit or re/rict ! inclusion 9 any *ur* plan 7z def9$ 9 ?is subsection7 ( an automatic contribution arrangem5t4 7#b7 ,def9ition ( automatic contribution arrangem5t ,= purposes ( ?is subsection1 ! t]m automatic contribution arrangem5t means an arrangem5t-- 7,a7 "u :i* a p>ticipant may elect to h ! plan sponsor make paym5ts z contributions "u ! plan on behalf ( ! p>ticipant1 or to ! p>ticipant directly 9 ca%1 & 7,b7 "u :i* a p>ticipant is treat$ z hav+ elect$ to h ! plan sponsor make su* contributions 9 an am\nt equal to a uni=m p]c5tage ( comp5sation provid$ "u ! plan until ! p>ticipant specifically elects n to h su* contributions made 7or specifically elects to h su* contributions made at a diff]5t p]c5tage74 7#c7 ,notice requirem5ts 7,a7 ,! plan adm9i/rator ( an automatic contribution arrangem5t %all1 )9 a reasonable p]iod be=e su* plan ye>1 provide to ea* p>ticipant to :om ! arrangem5t applies = su* plan ye> notice ( ! p>ticipant's rights & obligations "u ! arrangem5t :i*-- 7i7 is suffici5tly accurate & compreh5sive to apprise ! p>ticipant ( su* rights & obligations1 & 7ii7 is writt5 9 a mann] calculat$ to be und]/ood by ! av]age p>ticipant to :om ! arrangem5t applies4 7,b7 ,a notice %all n be treat$ z meet+ ! requirem5ts ( subp>agraph 7,a7 ) respect to a p>ticipant unless-- 7i7 ! notice includes an explanation ( ! p>ticipant's "r "u ! arrangem5t n to h elective contributions made on ! p>ticipant's behalf 7or to elect to h su* contributions made at a diff]5t p]c5tage71 7ii7 ! p>ticipant has a reasonable p]iod ( "t1 aft] receipt ( ! notice describ$ 9 subp>agraph 7,a7 & be=e ! fir/ elective contribution is made1 to make su* election1 & 7iii7 ! notice expla9s h[ contributions made "u ! arrangem5t w be inve/$ 9 ! abs5ce ( any inve/m5t election by ! p>ticipant4 7#d7 ,effective date ,?is subsection %all take effect on ! date ( ! enactm5t ( ?is ,act4 7d7 ,all[ c]ta9 plan transf]s & m]g]s 7#a7 ,9 g5]al ,section #dad is am5d$ by add+ at ! end ! foll[+ new subsection3 7y7 ,c]ta9 plan transf]s & m]g]s 7#a7 ,9 g5]al ,"u rules prescrib$ by ! ,secret>y1 except z provid$ 9 p>agraph 7#b71 no am\nt %all be includible 9 gross income by reason (-- 7,a7 a transf] ( all or a portion ( ! acc\nt balance ( a p>ticipant or b5efici>y1 :e!r or n ve/$1 f a plan describ$ 9 section #dja7;a7 or an annuity contract describ$ 9 section #djc7;b71 :i* is a *ur* plan describ$ 9 section #dad7;e7 to an annuity contract describ$ 9 section #djc7;b71 if su* plan & annuity contract are bo? ma9ta9$ by ! same *ur* or conv5tion or association ( *ur*es1 7,b7 a transf] ( all or a portion ( ! acc\nt balance ( a p>ticipant or b5efici>y1 :e!r or n ve/$1 f an annuity contract describ$ 9 section #djc7;b7 to a plan describ$ 9 section #dja7;a7 or an annuity contract describ$ 9 section #djc7;b71 :i* is a *ur* plan describ$ 9 section #dad7;e71 if su* plan & annuity contract are bo? ma9ta9$ by ! same *ur* or conv5tion or association ( *ur*es1 or 7,c7 a m]g] ( a plan describ$ 9 section #dja7;a71 or an annuity contract describ$ 9 section #djc7;b71 :i* is a *ur* plan describ$ 9 section #dad7;e7 ) an annuity contract describ$ 9 section #djc7;b71 if su* plan & annuity contract are bo? ma9ta9$ by ! same *ur* or conv5tion or association ( *ur*es4 7#b7 ,limitation ,p>agraph 7#a7 %all n apply to a transf] or m]g] unless ! p>ticipant's or b5efici>y's b5efit imm$iately aft] ! transf] or m]g] is equal to or great] ?an ! p>ticipant's or b5efici>y's b5efit imm$iately be=e ! transf] or m]g]4 7#c7 ,qualification ,a plan or annuity contract %all n fail to be consid]$ to be describ$ 9 sections #dja7;a7 or #djc7;b7 m]ely because su* plan or acc\nt engages 9 a transf] or m]g] describ$ 9 ?is subsection4 7#d7 ,def9itions ,= purposes ( ?is subsection3 7,a7 ,*ur* ,! t]m *ur* includes an organization describ$ 9 subp>agraph 7,a7 or 7,b77ii7 ( subsection 7e77#c74 7,b7 ,annuity contract ,! t]m annuity contract includes a cu/odial acc\nt describ$ 9 section #djc7;b77#g7 & a retirem5t income acc\nt describ$ 9 section #djc7;b77#i74 4 7#b7 ,effective date ,! am5dm5t made by ?is subsection %all apply to transf]s or m]g]s occurr+ aft] ! date ( ! enactm5t ( ?is ,act4 7e7 ,inve/m5ts by *ur* plans 9 collective tru/s 7#a7 ,9 g5]al ,9 ! case (-- 7,a7 a *ur* plan 7z def9$ 9 section #dad7;e7 ( ! ,int]nal ,rev5ue ,code #aihf71 includ+ a plan describ$ 9 section #dja7;a7 ( su* ,code & a retirem5t income acc\nt describ$ 9 section #djc7;b77#i7 ( su* ,code1 & 7,b7 an organization describ$ 9 section #dad7;e77#c77;,a7 ( su* ,code ! pr9cipal purpose or function ( :i* is ! adm9i/ration ( su* a plan or acc\nt1 ! assets ( su* plan1 acc\nt1 or organization 7includ+ any assets o!rwise p]mitt$ to be comm+l$ = inve/m5t purposes ) ! assets ( su* a plan1 acc\nt1 or organization7 may be inve/$ 9 a gr\p tru/ o!rwise describ$ 9 ,int]nal ,rev5ue ,s]vice ,rev5ue ,rul+ #ha-ajj 7z modifi$ by ,int]nal ,rev5ue ,s]vice ,rev5ue ,rul+s #bjjd-fg & #bjaa-a71 or any subsequ5t rev5ue rul+ t sup]s$es or modifies su* rev5ue rul+1 )\t adv]sely affect+ ! tax /atus ( ! gr\p tru/1 su* plan1 acc\nt1 or organization1 or any o!r plan or tru/ t inve/s 9 ! gr\p tru/4 7#b7 ,effective date ,?is subsection %all apply to inve/m5ts made aft] ! date ( ! enactm5t ( ?is ,act4 #djf4 ,protect+ old]1 long] s]vice p>ticipants 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ to read z foll[s3 7#d7 ,nondiscrim9ation 7,a7 ,9 g5]al ,a tru/ %all n con/itute a qualifi$ tru/ "u ?is section unless ! contributions or b5efits provid$ "u ! plan d n discrim9ate 9 favor ( highly comp5sat$ employees 7)9 ! mean+ ( section #dad7q774 ,= purposes ( ?is p>agraph1 !re %all be exclud$ f consid]ation employees describ$ 9 section #daj7;b77#c7 7,a7 & 7,c74 7,b7 ,protection ( old]1 long] s]vice p>ticipants 7i7 7,i7 ,a def9$ b5efit plan describ$ 9 subclause 7,,ii7 %all n fail to satisfy ?is p>agraph ) respect to plan b5efits1 rights1 or features by reason (-- 7aa7 ! composition ( ! clos$ class ( p>ticipants describ$ 9 subclause 7,,ii71 or 7bb7 ! b5efits1 rights1 or features provid$ to su* clos$ class4 7,,ii7 ,a plan is describ$ 9 ?is subclause if-- 7aa7 ! plan provides b5efits1 rights1 or features to a clos$ class ( p>ticipants1 7bb7 su* clos$ class & su* b5efits1 rights1 & features satisfy ! requirem5ts ( subp>agraph 7,a7 7)\t reg>d to ?is clause7 z ( ! date t ! class 0 clos$1 & 7cc7 aft] ! date z ( :i* ! class 0 clos$1 any plan am5dm5ts t modify ! clos$ class or ! b5efits1 rights1 & features provid$ to su* clos$ class satisfy subp>agraph 7,a7 7)\t reg>d to ?is clause74 ,if a plan am5dm5t causes a plan to cease to be describ$ 9 ?is subclause 7,,ii7 by reason ( subclause 7,,ii77cc71 ! plan is nev]!less describ$ 9 ?is subclause 7,,ii7 if su* plan satisfies ?is subclause 7,,ii7 7)\t reg>d to subclause 7,,ii77cc77 z ( ! effective date ( su* am5dm5t4 ,9 su* cases1 subclauses 7,,ii77bb7 & 7cc7 %all subsequ5tly be appli$ by ref]5ce to ! effective date ( ! plan am5dm5t1 r ?an by ref]5ce to ! orig9al date t ! class 0 clos$4 7ii7 7,i7 ,a def9$ contribution plan describ$ 9 subclause 7,,ii7 %all p]mitt$ to be te/$ on a b5efits basis4 7,,ii7 ,a def9$ contribution plan is describ$ 9 ?is subclause if-- 7aa7 ! plan provides make-:ole contributions to a clos$ class ( p>ticipants ^: def9$ b5efit plan accruals h be5 r$uc$ or elim9at$1 7bb7 su* clos$ class ( p>ticipants satisfies section #daj7;b77#b77;,a77i7 z ( ! date t ! class ( p>ticipants 0 clos$1 & 7cc7 aft] ! date z ( :i* ! class 0 clos$1 any plan am5dm5ts t modify ! clos$ class or ! allocations1 b5efits1 rights1 & features provid$ to su* clos$ class satisfy subp>agraph 7,a7 7)\t reg>d to ?is clause74 ,if a plan am5dm5t causes a plan to cease to be describ$ 9 ?is subclause 7,,ii7 by reason ( subclause 7,,ii77cc71 ! plan is nev]!less describ$ 9 ?is subclause 7,,ii7 if su* plan satisfies ?is subclause 7,,ii7 7)\t reg>d to subclause 7,,ii77cc77 z ( ! effective date ( su* am5dm5t4 ,9 su* cases1 subclause 7,,ii77bb7 & 7cc7 %all subsequ5tly be appli$ by ref]5ce to ! effective date ( ! plan am5dm5t1 r ?an by ref]5ce to ! orig9al date t ! class 0 clos$4 7,,iii7 ,9 addition to o!r te/+ me?odologies o!rwise applicable1 = purposes ( det]m9+ compliance ) ?is p>agraph & ) section #daj7;b7 ( ! portion ( "o or m def9$ contribution plans describ$ 9 subclause 7,,ii7 t provide make-:ole contributions1 su* portion ( su* plans may be aggregat$ & te/$ on a b5efits basis ) ! portion ( "o or m def9$ contribution plans t-- 7aa7 provides mat*+ contributions 7z def9$ 9 subsection 7m77#d77;,a771 or 7bb7 consi/s ( an employee /ock own]%ip plan )9 ! mean+ ( section #dige7;e77#g7 or a tax cr$it employee /ock own]%ip plan )9 ! mean+ ( section #dji7;a74 ,= su* purposes1 mat*+ contributions %all be treat$ 9 ! same mann] z employ] contributions t are made )\t reg>d to :e!r an employee makes an elective contribution or employee contribution1 includ+ = purposes ( apply+ ! rules ( subsection 7l74 7,c7 ,def9itions ,= purposes ( ?is p>agraph-- 7i7 ,make-:ole contributions ,! t]m make-:ole contributions means allocations = ea* employee 9 ! class t are reasonably calculat$1 9 a consi/5t mann]1 to replace "s or all ( ! retirem5t b5efits t ! employee w\ld h receiv$ "u ! def9$ b5efit plan & any o!r plan or arrangem5t if ! employee _h cont9u$ to b5efit at ! same level "u su* def9$ b5efit plan & su* o!r plan or arrangem5t4 7ii7 ,ref]5ces to clos$ class ( p>ticipants ,ref]5ces to a clos$ class ( p>ticipants & simil> ref]5ces to a clos$ class %all include arrangem5ts "u :i* "o or m classes ( p>ticipants are clos$4 7,d7 ,protect+ gr&fa!r$ p>ticipants 9 def9$ b5efit plans 7i7 ,"o or m def9$ b5efit plans describ$ 9 clause 7ii7 %all be p]mitt$ to be te/$ on a b5efits basis ) "o or m def9$ contribution plans4 7ii7 ,a def9$ b5efit plan is describ$ 9 ?is clause if-- 7,i7 ! plan provides b5efits to a clos$ class ( p>ticipants1 7,,ii7 ! plan & su* b5efits satisfy ! requirem5ts ( subp>agraph 7,a7 7)\t reg>d to ?is subp>agraph7 z ( ! date ! class 0 clos$1 & 7,,iii7 aft] ! date z ( :i* ! class 0 clos$1 any plan am5dm5ts t modify ! clos$ class or ! b5efits provid$ to su* clos$ class satisfy subp>agraph 7,a7 7)\t reg>d to ?is subp>agraph74 ,if a plan am5dm5t causes a plan to cease to be describ$ 9 ?is clause 7ii7 by reason ( subclause 7,,iii71 ! plan is nev]!less describ$ 9 ?is clause 7ii7 if su* plan satisfies ?is clause 7ii7 7)\t reg>d to subclause 7,,iii77 z ( ! effective date ( su* am5dm5t4 ,9 su* cases1 subclauses 7,,ii7 & 7,,iii7 %all subsequ5tly be appli$ by ref]5ce to ! effective date ( ! plan am5dm5t1 r ?an by ref]5ce to ! orig9al date t ! class 0 clos$4 7iii7 ,9 addition to o!r te/+ me?odologies o!rwise applicable1 = purposes ( det]m9+ compliance ) ?is p>agraph & ) section #daj7;b7 ( "o or m def9$ b5efit plans describ$ 9 clause 7ii71 su* plans may be aggregat$ & te/$ on a b5efits basis ) ! portion ( "o or m def9$ contribution plans t-- 7,i7 provides mat*+ contributions 7z def9$ 9 subsection 7m77#d77;,a771 or 7,,ii7 consi/s ( an employee /ock own]%ip plan )9 ! mean+ ( section #dige7;e77#g7 or a tax cr$it employee /ock own]%ip plan )9 ! mean+ ( section #dji7;a74 ,= su* purposes1 mat*+ contributions %all be treat$ 9 ! same mann] z employ] contributions t are made )\t reg>d to :e!r an employee makes an elective contribution or employee contribution1 includ+ = purposes ( apply+ ! rules ( subsection 7l74 7,e7 ,rules ,! ,secret>y may prescribe rules design$ to prev5t abuse ( ! plan designs o!rwise p]mitt$ by reason ( subp>agraphs 7,b7 & 7,d74 ,su* rules %all be direct$ t[>ds abuses "u :i* ! def9$ b5efit plan 0 e/abli%$ )9 a specifi$ p]iod prior to ! date t-- 7i7 ! class ( p>ticipants describ$ 9 subp>agraphs 7,b77i77,,ii77aa71 7,b77ii77,,ii77aa71 & 7,d77ii77,i7 is clos$1 or 7ii7 ! def9$ b5efit plan accruals h be5 r$uc$ or elim9at$1 9 ! case ( ! make-:ole contributions describ$ 9 subp>agraph 7,c74 7,f7 ,transition rules ,)9 "o ye> aft] ! date ( enactm5t ( ! ,retirem5t ,plan ,simplification & ,enhancem5t ,act ( #bjac1 ! ,secret>y %all prescribe rules t facilitate ! use ( ! provisions ( subp>agraph 7,b7 & 7,d7 )\t reg>d to-- 7i7 :e!r ! clos+ ( ! class ( p>ticipants ref]r$ to 9 su* subp>agraphs occurr$ be=e or aft] su* date ( enactm5t1 or 7ii7 plan am5dm5ts t 7 adopt$ or effective be=e su* date ( enactm5t & t w\ld n h be5 necess>y if subp>agraphs 7,b7 & 7,d7 _h be5 9 effect4 4 7b7 ,p>ticipation requirem5ts ,p>agraph 7#bf7 ( section #dja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,i7 ,protect$ p>ticipants ,a plan describ$ 9 ?is subp>agraph %all be deem$ to satisfy ! requirem5ts ( subp>agraph 7,a74 ,a plan is describ$ 9 ?is p>agraph if-- 7i7 ! plan is am5d$ to-- 7,i7 cease all b5efit accruals1 or 7,,ii7 provide future b5efit accruals only to a clos$ class ( p>ticipants1 & 7ii7 ! plan satisfies subp>agraph 7,a7 7)\t reg>d to ?is subp>agraph7 z ( ! effective date ( ! am5dm5t4 ,! ,secret>y may prescribe su* rules z are necess>y or appropriate to fulfill ! purposes ( ?is subp>agraph1 includ+ prev5tion ( abuse ( ?is subp>agraph 9 ! case ( plans e/abli%$ )9 a specific p]iod prior to ! effective date ( ! am5dm5t4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act1 )\t reg>d to :e!r any plan modifications ref]5c$ 9 su* am5dm5ts are adopt$ or effective be=e1 on1 or aft] su* date ( enactm5t4 #djg4 ,review & report to ! ,congress relat+ to report+ & disclosure requirem5ts 7a7 ,/udy ,z soon z practicable aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation %all review ! report+ & disclosure requirem5ts (-- 7#a7 title ,i ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd applicable to p5sion plans 7z def9$ 9 section #c7b7 ( su* ,act71 & 7#b7 ! ,int]nal ,rev5ue ,code ( #aihf applicable to qualifi$ retirem5t plans 7z def9$ 9 section #digd7;c7 ( su* ,code )\t reg>d to p>agraphs 7#d7 & 7#e7 !re(74 7b7 ,report ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor1 ! ,secret>y ( ! ,treasury1 & ! ,p5sion ,b5efit ,gu>anty ,corporation1 jo9tly1 %all make su* recomm5dations z may be appropriate to ! appropriate committees ( ! ,congress to consolidate1 simplify1 /&>dize1 & improve ! applicable report+ & disclosure requirem5ts s z to simplify report+ = plans ref]5c$ to 9 subsection 7a7 & ensure t ne$$ und]/&able in=mation is provid$ to p>ticipants & b5efici>ies ( su* plans4 #djh4 ,consolidation ( def9$ contribution plan notices 7a7 ,9 g5]al 7#a7 ,n lat] ?an #ah mon?s aft] ! date ( ! enactm5t ( ?is ,act1 ! ,secret>y ( ,labor & ! ,secret>y ( ! ,treasury %all adopt f9al regulations provid+ t a plan may1 b is n requir$ to1 consolidate two or m ( ! notices requir$ "u sections #djd7;c77#e77;,b7 & #ead7;e77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aadd7;e77#c771 sections #dja7k77#ab77;,d71 #dja7k77#ac77;,e71 & #dad7w77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 & section #beej4djd;a-#e ( title #bi1 ,code ( ,f$]al ,regulations 7#bi ,c4,f4,r4 #beej4djd;a-#e7 into a s+le notice or1 to ! ext5t provid$ by su* regulations1 consolidate su* notices ) ! summ>y plan description or summ>y ( mat]ial modifications describ$ 9 section #ajd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7;b771 s long z ! comb9$ notice1 summ>y plan description or summ>y ( mat]ial modifications includes ! requir$ cont5t1 cle>ly id5tifies ! issues address$ !re91 & is provid$ at ! "t & ) ! frequ5cy requir$ = ea* su* notice4 7#b7 ,! ,secret>y ( ,labor & ! ,secret>y ( ! ,treasury may include 9 su* regulations rules to ensure t1 to ! ext5t su* notices are consolidat$ ) ! summ>y plan description or summ>y ( mat]ial modifications1 ! pres5tation1 placem5t1 or prom95ce ( ! in=mation 9 su* notices %all n h ! effect ( fail+ to in=m p>ticipants & b5efici>ies reg>d+ ! in=mation 9 su* notices4 7b7 ,provision ( annual notices )\t reg>d to plan ye> 7#a7 ,clause 7i7 ( section #djd7;c77#e77;,b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7;c77#e77;,b77 is am5d$-- 7,a7 9 subclause 7,i7 by /rik+ )9 a reasonable p]iod ( "t be=e ea* plan ye>1 & ins]t+ )9 a reasonable p]iod be=e ! arrangem5t describ$ 9 subp>agraph 7,a7 applies to su* p>ticipant or b5efici>y1 & !reaft] at lea/ once )9 any #ab-mon? p]iod 7)\t reg>d to ! plan ye>7 dur+ :i* su* arrangem5t applies11 & 7,b7 9 subclause 7,,ii7 by /rik+ & be=e ! beg9n+ ( ! plan ye>4 7#b7 ,subp>agraph 7,a7 ( section #ead7;e77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aadd7;e77#c77;,a77 is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e su* plan ye>1 provide to ea* p>ticipant to :om ! arrangem5t applies = su* plan ye> & ins]t+ 1 )9 a reasonable p]iod be=e ! arrangem5t applies to a p>ticipant or b5efici>y1 & !reaft] at lea/ once )9 any #ab-mon? p]iod 7)\t reg>d to ! plan ye>7 dur+ :i* su* arrangem5t applies1 provide4 7#c7 ,clause 7i7 ( section #dja7k77#ac77;,e7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e ea* plan ye>1 ea* employee eligible to p>ticipate 9 ! arrangem5t = su* ye> receives & ins]t+ ea* employee eligible to p>ticipate 9 ! arrangem5t receives1 )9 a reasonable p]iod be=e ! employee becomes eligible1 & !reaft] )9 a reasonable p]iod be=e ea* plan ye> dur+ :i* su* arrangem5t applies14 7#d7 ,subp>agraph 7,d7 ( section #dja7k77#ab7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e any ye>1 giv5 writt5 notice & ins]t+ giv5 writt5 notice1 )9 a reasonable p]iod be=e ! employee becomes eligible1 & !reaft] )9 a reasonable p]iod be=e ea* plan ye> dur+ :i* su* arrangem5t applies14 7#e7 ,subp>agraph 7,a7 ( section #dad7w77#d7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ 1 )9 a reasonable p]iod be=e ea* plan ye>1 give to ea* employee to :om an arrangem5t describ$ 9 p>agraph 7#c7 applies = su* plan ye> & ins]t+ 1 )9 a reasonable p]iod be=e an arrangem5t describ$ 9 p>agraph 7#c7 applies to an employee1 & !reaft] at lea/ once )9 any #ab-mon? p]iod 7)\t reg>d to ! plan ye>7 dur+ :i* su* arrangem5t applies1 give to ea* su* employee4 #dji4 ,p]=mance b5*m>ks = asset allocation funds ,n lat] ?an six mon?s aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,labor %all modify ! regulations "u section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd to provide t1 9 ! case ( a designat$ inve/m5t alt]native t conta9s a mix ( asset classes1 a plan adm9i/rator may1 b is n requir$ to1 use a b5*m>k t is a bl5d ( diff]5t broad-bas$ securities m>ket indices if-- 7#a7 ! bl5d is reasonably repres5tative ( ! asset class hold+s ( ! designat$ inve/m5t alt]native2 7#b7 = purposes ( det]m9+ ! bl5d's returns = #a-1 #e-1 & #aj-;cal5d> ye> p]iods 7or = ! life ( ! alt]native1 if %ort]71 ! bl5d is modifi$ at lea/ once p] ye> to reflect *anges 9 ! asset class hold+s ( ! designat$ inve/m5t alt]native2 & 7#c7 ea* securities m>ket index t is us$ = an associat$ asset class w\ld sep>ately satisfy ! requirem5ts ( su* regulations = su* asset class4 #daj4 ,p]mit nonsp\sal b5efici>ies to roll assets to plans 7a7 ,9 g5]al ,section #djb7;c7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ab7 ,di/ributions to qualifi$ plan ( nonsp\se b5efici>y ,if1 ) respect to any portion ( a di/ribution f an eligible retirem5t plan describ$ 9 p>agraph 7#h77;,b77iii7 ( a deceas$ employee1 a direct tru/ee-to-tru/ee transf] is made to a plan or annuity describ$ 9 clause 7iii71 7iv71 7v71 or 7vi7 ( p>agraph 7#h77;,b7 ( an individual :o is a designat$ b5efici>y 7z def9$ by section #dja7;a77#i77;,e77 ( ! employee & :o is n ! surviv+ sp\se ( ! employee-- 7,a7 ! transf] %all be treat$ z an eligible rollov] di/ribution1 & 7,b7 section #dja7;a77#i77;,b7 7o!r ?an clause 7iv7 !re(7 %all apply to su* plan4 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to di/ributions made aft] ! date ( ! enactm5t ( ?is ,act4 #daa4 ,elim9ate ! 8fir/ day ( ! mon?0 requirem5t 7a7 ,9 g5]al ,p>agraph 7#d7 ( section #deg7;b7 is am5d$ to read z foll[s3 7#d7 :i* provides t comp5sation w be def]r$ only if an agreem5t provid+ = su* def]ral has be5 ent]$ into be=e ! comp5sation is curr5tly available to ! individual1 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to ye>s beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4 ,v ,provisions ensur+ equity 9 divorce #eja4 ,special rules relat+ to treatm5t ( qualifi$ dome/ic relations ord]s 7a7 ,pres]vation ( assets 7#a7 ,am5dm5t ( #aihf code ,section #dad7p7 is am5d$ by r$esignat+ p>agraph 7#ac7 z p>agraph 7#ad7 & by ins]t+ aft] p>agraph 7#ab7 ! foll[+ new p>agraph3 7#ac7 ,pres]vation ( assets 7,a7 ,9 g5]al ,if a sp\se or =m] sp\se ( a p>ticipant notifies a plan 9 writ+ t-- 7i7 an action is p5d+ pursuant to a ,/ate dome/ic relations law 7includ+ a community prop]ty law71 & 7ii7 all or a portion ( ! b5efits payable ) respect to ! p>ticipant "u ! plan are a subject ( su* action1 & includes ) ! notice evid5ce ( ! p5d5cy ( ! action1 ! plan adm9i/rator %all1 dur+ ! segregation p]iod1 sep>ately acc\nt = #ej p]c5t ( su* b5efits4 ,any am\nts s sep>ately acc\nt$ = may n be di/ribut$ by ! plan dur+ ! segregation p]iod4 7,b7 ,segregation p]iod ,= purposes ( subp>agraph 7,a71 ! t]m segregation p]iod means ! p]iod-- 7i7 beg9n+ on ! date ( ! receipt ( ! notice1 & 7ii7 end+ z ( ! close ( ! #ij-;day p]iod beg9n+ on su* date 7or1 if e>li]1 ! date ( receipt ( a dome/ic relations ord] ) respect to ! p>ticipant & ! sp\se or =m] sp\se or ! date ! action is no long] p5d+74 ,! segregation p]iod %all be ext5d$ = #a or m additional p]iods describ$ 9 ! prec$+ s5t5ce ^u notice by ! sp\se or =m] sp\se t ! action describ$ 9 subp>agraph 7,a7 is /ill p5d+ z ( ! close ( any prior segregation p]iod4 4 7#b7 ,am5dm5t ( ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjf7;d77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajef7;d77#c77 is am5d$ by r$esignat+ subp>agraph 7,n7 z subp>agraph 7,o7 & by ins]t+ aft] subp>agraph 7,m7 ! foll[+ new subp>agraph3 7,n7 ,pres]vation ( assets 7i7 ,9 g5]al ,if a sp\se or =m] sp\se ( a p>ticipant notifies a plan 9 writ+ t-- 7,i7 an action is p5d+ pursuant to a ,/ate dome/ic relations law 7includ+ a community prop]ty law71 & 7,,ii7 all or a portion ( ! b5efits payable ) respect to ! p>ticipant "u ! plan are a subject ( su* action1 & includes ) ! notice evid5ce ( ! p5d5cy ( ! action1 ! plan adm9i/rator %all1 dur+ ! segregation p]iod1 sep>ately acc\nt = #ej p]c5t ( su* b5efits4 ,any am\nts s sep>ately acc\nt$ = may n be di/ribut$ by ! plan dur+ ! segregation p]iod4 7ii7 ,segregation p]iod ,= purposes ( clause 7i71 ! t]m segregation p]iod means ! p]iod-- 7,i7 beg9n+ on ! date ( ! receipt ( ! notice1 & 7,,ii7 end+ z ( ! close ( ! #ij-;day p]iod beg9n+ on su* date 7or1 if e>li]1 ! date ( receipt ( a dome/ic relations ord] ) respect to ! p>ticipant & ! sp\se or =m] sp\se or ! date ! action is no long] p5d+74 ,! segregation p]iod %all be ext5d$ = #a or m additional p]iods describ$ 9 ! prec$+ s5t5ce ^u notice by ! sp\se or =m] sp\se t ! action describ$ 9 clause 7i7 is /ill p5d+ z ( ! close ( any prior segregation p]iod4 4 7b7 ,p5alty = failure ,to provide in=mation reg>d+ alt]nate payees ,section #ejb7;c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aacb7;c77 is am5d$ by r$esignat+ p>agraphs 7#h7 & 7#i7 z p>agraphs 7#i7 & 7#aj71 respectively1 & by ins]t+ aft] p>agraph 7#g7 ! foll[+ new p>agraph3 7#h7 ,failure to provide in=mation reg>d+ alt]nate payees ,! ,secret>y may assess a civil p5alty aga9/ any plan adm9i/rator ( up to #ajj a day f ! date ( ! plan adm9i/rator's failure or refusal to provide ! in=mation ! plan adm9i/rator is requir$ to provide "u regulations "u ?is ,act to prospective alt]native payees "u a dome/ic relations ord] "u section #bjf7;d77#c7 or to ! ,secret>y or any repres5tative ( a prospective alt]native payee 9 connection ) su* an ord]4 4 7c7 ,allocation ( plan exp5ses 9 comply+ ) dome/ic relations ord]s 7#a7 ,am5dm5t ( #aihf code ,section #dad7p71 z am5d$ by subsection 7a71 is am5d$ by r$esignat+ p>agraph 7#ad7 z p>agraph 7#ae7 & by ins]t+ aft] p>agraph 7#ac7 ! foll[+ new p>agraph3 7#ad7 ,allocation ( exp5ses ,any exp5ses incurr$ by a plan ) respect to compliance ) ! requirem5ts ( ?is subsection %all n be allocat$ to an individual p>ticipant b r %all be allocat$ among all p>ticipants on ! basis ( ! relative value ( ea* p>ticipant's %>e ( ! assets ( ! plan1 on ! basis ( a flat am\nt p] p>ticipant1 or on any o!r reasonable basis provid$ = "u ! plan4 4 7#b7 ,am5dm5t ( ,employee ,retirem5t ,income ,security ,act ( #aigd ,section #bjf7;d77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajef7;d77#c771 z am5d$ by subsection 7a71 is am5d$ by r$esignat+ subp>agraph 7,o7 z subp>agraph 7,p7 & by ins]t+ aft] subp>agraph 7,n7 ! foll[+ new subp>agraph3 7,o7 ,allocation ( exp5ses ,any exp5ses incurr$ by a plan ) respect to compliance ) ! requirem5ts ( ?is p>agraph %all n be allocat$ to an individual p>ticipant b r %all be allocat$ among all p>ticipants on ! basis ( ! relative value ( ea* p>ticipant's %>e ( ! assets ( ! plan1 on ! basis ( a flat am\nt p] p>ticipant1 or on any o!r reasonable basis provid$ = "u ! plan4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #ejb4 ,elim9ation ( curr5t connection requirem5t "u ,railroad ,retirem5t ,act = c]ta9 survivors 7a7 ,9 g5]al ,section #b7;d77#a7 ( ! ,railroad ,retirem5t ,act ( #aigd 7#de ,u4,s4,c4 #bca;a7d77#a771 9 ! matt] prec$+ p>agraph 7i71 is am5d$ by ins]t+ 1 except ) respect to survivors describ$ 9 p>agraph 7i71 7ii71 or 7v71 aft] ,decemb] #ca1 #aiie7 &4 7b7 ,effective dates 7#a7 ,9 g5]al ,! am5dm5t made by subsection 7a7 %all take effect on ! date ( enactm5t ( ?is ,act4 7#b7 ,retroactive application to c]ta9 survivors ,if a survivor ( a deceas$ employee w\ld be entitl$ to an annuity by reason ( ! am5dm5t made by subsection 7a7 b = ! fact t ! employee di$ be=e ! date ( ! enactm5t ( ?is ,act1 ! survivor %all be entitl$ to su* an annuity b only ) respect to annuity paym5ts = mon?s beg9n+ on or aft] su* date4 ,appropriate adju/m5ts %all be made 9 annuity paym5ts ( o!r individuals to reflect any annuity payable by reason ( ?is p>agraph4 #ejc4 ,p]mitt+ divorc$ sp\ses & wid[s & wid[]s to rem>ry aft] turn+ #fj )\t a p5alty "u ,railroad ,retirem5t ,act 7a7 ,9 g5]al 7#a7 ,divorc$ sp\se ,section #b7;c77#d7 ( ! ,railroad ,retirem5t ,act ( #aigd 7#de ,u4,s4,c4 #bca;a7c77#d77 is am5d$ by add+ at ! end ! foll[+ new s5t5ce3 ,= purposes ( p>agraph 7ii77,b71 if a divorc$ wife m>ries aft] atta9+ age #fj1 su* m>riage %all be deem$ n to h occurr$44 7#b7 ,wid[s & wid[]s ,section #b7;d77#a77v7 ( ! ,railroad ,retirem5t ,act ( #aigd 7#de ,u4,s4,c4 #bca;a7d77#a77v77 is am5d$ by add+ at ! end ! foll[+ new s5t5ce3 ,= purposes ( ?is p>agraph1 if a wid[ m>ries aft] atta9+ age #fj1 su* m>riage %all be deem$ n to h occurr$44 7b7 ,effective dates 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all take effect on ! date ( enactm5t ( ?is ,act4 7#b7 ,retroactive application ,if a divorc$ wife1 wid[1 or wid[] w\ld be entitl$ to an annuity by reason ( ! am5dm5ts made by ?is section b = ! fact ! individual 0 m>ri$ be=e ! date ( ! enactm5t ( ?is ,act1 ! individual %all be entitl$ to su* an annuity b only ) respect to annuity paym5ts = mon?s beg9n+ on or aft] su* date4 ,appropriate adju/m5ts %all be made 9 annuity paym5ts ( o!r individuals to reflect any annuity payable by reason ( ?is p>agraph4 #ejd4 ,repeal ( jurisdictional requirem5t = c\rt to treat milit>y retirem5t pay z prop]ty ( ! milit>y memb] & sp\se 7a7 ,9 g5]al ,section #adjh7;c7 ( title #aj1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ p>agraph 7#d74 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to f9al decrees issu$ on or aft] ! date ( ! enactm5t ( ?is ,act4 #eje4 ,modification ( r$uctions 9 disposable retir$ pay = paym5ts 9 compliance ) c\rt ord]s 7a7 ,9 g5]al ,section #adjh7;d7 ( title #aj1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#h7 ,not)/&+ subsection 7a77#d7 or 7e77#a71 if ! disposable retir$ pay ( a memb] is r$uc$ "u subp>agraph 7,b7 ( subsection 7a77#d7 z a result ( a waiv] requir$ to receive comp5sation "u title #ch1 or is r$uc$ "u subp>agraph 7,c7 ( subsection 7a77#d71 ! ,secret>y conc]n$ %all pay 7subject to any o!r limitation "u ?is section7 to ! sp\se or =m] sp\se ! less] (-- 7,a7 ! am\nt payable "u ! f9al c\rt ord] f ! disposable retir$ pay 7det]m9$ )\t reg>d to su* r$uctions71 or 7,b7 #ajj p]c5t ( ! disposable retir$ pay 7det]m9$ aft] su* r$uctions74 4 7b7 ,effective ,date ,! am5dm5t made by ?is section %all apply to paym5ts ( disposable retir$ pay attributable to p]iods beg9n+ on or aft] ! date ( ! enactm5t ( ?is ,act ) respect to f9al c\rt ord]s issu$ on1 be=e1 or aft] su* date4 #ejf4 ,survivor annuities = wid[s1 wid[]s1 & =m] sp\ses ( f$]al employees :o die be=e atta9+ age = def]r$ annuity "u civil s]vice retirem5t sy/em 7a7 ,def9ition ,section #hcda7;a7 ( title #e1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ employee or ,memb] & ins]t+ employee1 ,memb]1 or annuitant1 or ( a =m] employee or ,memb]12 & 7#b7 9 p>agraph 7#b71 by /rik+ employee or ,memb] & ins]t+ employee1 ,memb]1 or annuitant1 or ( a =m] employee or ,memb]14 7b7 ,b5efits = wid[1 wid[]1 or =m] sp\se 7#a7 ,9 g5]al ,section #hcda ( title #e1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 7l7 ,if a =m] employee h]et(ore or h]eaft] sep>at$ f ! s]vice ) title to def]r$ annuity f ! ,fund h]eaft] dies be=e hav+ e/abli%$ a valid claim = annuity & is surviv$ by a wid[ or wid[] to :om m>ri$ at ! date ( sep>ation1 ! wid[ or wid[]-- 7#a7 is entitl$ to an annuity equal to #ee p]c5t ( ! def]r$ annuity ( ! =m] employee comm5c+ on ! day aft] ! =m] employee dies & t]m9at+ on ! la/ day ( ! mon? be=e ! wid[ or wid[] dies or rem>ries be=e becom+ #ee ye>s ( age2 or 7#b7 may elect to receive ! lump-sum cr$it in/ead ( annuity if ! wid[ or wid[] is ! individual :o w\ld be entitl$ to ! lump-sum cr$it & files application !re= ) ! ,(fice be=e ! aw>d ( ! annuity4 ,not)/&+ ! prec$+ s5t5ce1 an annuity payable "u ?is subsection to ! wid[ or wid[] ( a =m] employee may n exce$ ! diff]5ce betwe5-- 7,a7 ! annuity :i* w\ld o!rwise be payable to su* wid[ or wid[] "u ?is subsection1 & 7,b7 ! am\nt ( ! survivor annuity payable to any =m] sp\se ( su* =m] employee "u subsection 7h7 ( ?is section4 4 7#b7 ,te*nical & con=m+ am5dm5ts ,section #hcci7;j7 ( title #e1 ,unit$ ,/ates ,code1 is am5d$-- 7,a7 9 p>agraph 7#c77;,a77ii71 by /rik+ & 7h7 & ins]t+ 7h71 & 7l72 & 7,b7 9 p>agraph 7#d71 by /rik+ & 7h7 & ins]t+ 7h71 & 7l74 7c7 ,b5efits = =m] sp\se ,section #hcda7;h7 ( title #e1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 p>agraph 7#a71 by add+ aft] ! fir/ s5t5ce ,subject to p>agraphs 7#b7 ?r\gh 7#e7 ( ?is subsection1 a =m] sp\se ( a =m] employee :o dies aft] hav+ sep>at$ f ! s]vice ) title to a def]r$ annuity "u section #hcch7;a7 b be=e hav+ e/abli%$ a valid claim = annuity is entitl$ to a survivor annuity "u ?is subsection1 if & to ! ext5t expressly provid$ = 9 an election "u section #hcci7;j77#c7 ( ?is title1 or 9 ! t]ms ( any decree ( divorce or annulm5t or any c\rt ord] or c\rt-approv$ prop]ty settlem5t agreem5t incid5t to su* decree42 & 7#b7 9 p>agraph 7#b7-- 7,a7 9 subp>agraph 7,a77ii71 by /rik+ or annuitant1 & ins]t+ annuitant1 or =m] employee2 & 7,b7 9 subp>agraph 7,b7-- 7i7 9 clause 7ii71 by /rik+ or at ! end2 7ii7 9 clause 7iii71 by /rik+ ! p]iod & ins]t+ 2 or2 & 7iii7 by add+ at ! end ! foll[+3 7iv7 "u subp>agraph 7,a7 ( subsection 7l7 ( ?is section 9 ! case ( a wid[ or wid[]1 if ! deceas$ 0 a =m] employee describ$ 9 ! fir/ s5t5ce ( su* subsection4 4 7d7 ,protection ( survivor b5efit rights ,section #hcci7;j77#c7 ( title #e1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ at ! end ! foll[+3 ,! ,(fice %all provide by regulation = ! application ( ?is subsection to ! wid[1 wid[]1 or surviv+ =m] sp\se ( a =m] employee :o dies aft] hav+ sep>at$ f ! s]vice ) title to a def]r$ annuity "u section #hcch7;a7 b be=e hav+ e/abli%$ a valid claim = annuity44 7e7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act & %all apply only 9 ! case ( a =m] employee :o dies on or aft] su* date4 #ejg4 ,c\rt ord]s relat+ to ,f$]al retirem5t b5efits = =m] sp\ses ( f$]al employees 7a7 ,civil s]vice retirem5t sy/em ,section #hcde7;j7 ( title #e1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by r$esignat+ p>agraph 7#c7 z p>agraph 7#d72 & 7#b7 by ins]t+ aft] p>agraph 7#b7 ! foll[+3 7#c7 7,a7 ,a c\rt decree1 c\rt ord]1 prop]ty settlem5t1 or simil> process ref]r$ to "u p>agraph 7#a77;,a7 %all be treat$ z meet+ ! requirem5ts ( t p>agraph if x requires t paym5t ( b5efits be made to ! =m] sp\se ( ! employee1 ,memb]1 or annuitant-- 7i7 9 ! case ( any paym5t be=e ! employee1 ,memb]1 or annuitant has sep>at$ f s]vice1 on or aft] ! date on :i* ! employee1 ,memb]1 or annuitant atta9s 7or w\ld h atta9$7 ! e>lie/ retirem5t age1 7ii7 z if ! employee1 ,memb]1 or annuitant _h retir$ on ! date on :i* su* paym5t is to beg9 "u su* ord] 7b tak+ into acc\nt only ! pres5t value ( ! b5efits actually accru$ & n tak+ into acc\nt ! pres5t value ( any employ] subsidy = e>ly retirem5t71 & 7iii7 9 any =m 9 :i* su* b5efits may be paid "u ?is *apt] to ! employee1 ,memb]1 or annuitant 7o!r ?an 9 ! =m ( a jo9t & survivor annuity ) respect to ! =m] sp\se & 8 or h] subsequ5t sp\se74 ,= purposes ( clause 7ii71 ! int]e/ rate assumption us$ 9 det]m9+ ! pres5t value %all be ! int]e/ rate specifi$ "u ?is sub*apt] or1 if no rate is specifi$1 #e p]c5t4 7,b7 ,9 ?is p>agraph1 ! t]m e>lie/ retirem5t age means ! e>li] (-- 7i7 ! date on :i* ! employee1 ,memb]1 or annuitant is entitl$ to a di/ribution "u ?is sub*apt]1 or 7ii7 ! lat] (-- 7,i7 ! date ! employee1 ,memb]1 or annuitant atta9s age #ej1 or 7,,ii7 ! e>lie/ date on :i* ! employee1 ,memb]1 or annuitant c\ld beg9 receiv+ b5efits "u ?is *apt] if ! employee1 ,memb]1 or annuitant sep>at$ f s]vice4 4 7b7 ,f$]al employees retirem5t sy/em ,section #hdfg ( title #e1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 by r$esignat+ subsection 7c7 z subsection 7d72 & 7#b7 by ins]t+ aft] subsection 7b7 ! foll[+3 7c7 7#a7 ,a c\rt decree1 c\rt ord]1 prop]ty settlem5t1 or simil> process ref]r$ to "u subsection 7a77#a7 %all be treat$ z meet+ ! requirem5ts ( t subsection if x requires t paym5t ( b5efits be made to ! =m] sp\se ( ! employee1 ,memb]1 or annuitant-- 7,a7 9 ! case ( any paym5t be=e ! employee1 ,memb]1 or annuitant has sep>at$ f s]vice1 on or aft] ! date on :i* ! employee1 ,memb]1 or annuitant atta9s 7or w\ld h atta9$7 ! e>lie/ retirem5t age1 7,b7 z if ! employee1 ,memb]1 or annuitant _h retir$ on ! date on :i* su* paym5t is to beg9 "u su* ord] 7b tak+ into acc\nt only ! pres5t value ( ! b5efits actually accru$ & n tak+ into acc\nt ! pres5t value ( any employ] subsidy = e>ly retirem5t71 & 7,c7 9 any =m 9 :i* su* b5efits may be paid "u ?is *apt] to ! employee1 ,memb]1 or annuitant 7o!r ?an 9 ! =m ( a jo9t & survivor annuity ) respect to ! alt]nate payee & 8 or h] subsequ5t sp\se74 ,= purposes ( subp>agraph 7,b71 ! int]e/ rate assumption us$ 9 det]m9+ ! pres5t value %all be ! int]e/ rate specifi$ "u ?is *apt] or1 if no rate is specifi$1 #e p]c5t4 7#b7 ,9 ?is subsection1 ! t]m e>lie/ retirem5t age means ! e>li] (-- 7,a7 ! date on :i* ! employee1 ,memb]1 or annuitant is entitl$ to a di/ribution "u ?is *apt]1 or 7,b7 ! lat] (-- 7i7 ! date ! employee1 ,memb]1 or annuitant atta9s age #ej1 or 7ii7 ! e>lie/ date on :i* ! employee1 ,memb]1 or annuitant c\ld beg9 receiv+ b5efits "u ?is *apt] if ! employee1 ,memb]1 or annuitant sep>at$ f s]vice4 4 7c7 ,effective date & application ,! am5dm5ts made by ?is section %all take effect on ! date ( ! enactm5t ( ?is ,act & apply to any c\rt decree1 c\rt ord]1 prop]ty settlem5t1 or simil> process issu$ or approv$ be=e1 on1 or aft] t date4 ,,vi ,(fice ( ,p>ticipant & ,plan ,sponsor ,advocate #fja4 ,(fice ( ,p>ticipant & ,plan ,sponsor ,advocate 7a7 ,9 g5]al ,section #ghjc is am5d$ by add+ at ! end ! foll[+3 7e7 ,p>ticipant & plan sponsor advocate 7#a7 ,9 g5]al ,!re is e/abli%$ 9 ! ,int]nal ,rev5ue ,s]vice an (fice to be kn[n z ! ,(fice ( ! ,p>ticipant & ,plan ,sponsor ,advocate4 7#b7 ,p>ticipant & ,plan ,sponsor ,advocate 7,a7 ,9 g5]al ,! ,(fice ( ! ,p>ticipant & ,plan ,sponsor ,advocate %all be "u ! sup]vision & direction ( an (ficial to be kn[n z ! ,p>ticipant & ,plan ,sponsor ,advocate4 ,! ,commission] %all select ! ,p>ticipant & ,plan ,sponsor ,advocate )\t reg>d to ! provisions ( title #e1 ,unit$ ,/ates ,code1 relat+ to appo9tm5ts 9 ! competitive s]vice or ,s5ior ,executive ,s]vice4 7,b7 ,duties ,! ,p>ticipant & ,plan ,sponsor ,advocate %all-- 7i7 act z a liaison betwe5 ! ,int]nal ,rev5ue ,s]vice1 sponsors ( sponsors ( qualifi$ retirem5t plans 7z def9$ 9 section #digd7;c771 & p>ticipants 9 su* plans2 7ii7 advocate = ! full atta9m5t ( ! rights ( su* plan sponsors & p>ticipants2 7iii7 assi/ p5sion plan sponsors & p>ticipants 9 resolv+ disputes ) ! ,int]nal ,rev5ue ,s]vice2 7iv7 id5tify areas 9 :i* p>ticipants & plan sponsors h p]si/5t problems 9 deal+s ) ! ,int]nal ,rev5ue ,s]vice2 7v7 to ! ext5t possible1 propose *anges 9 ! adm9i/rative practices ( ! ,int]nal ,rev5ue ,s]vice to mitigate problems2 7vi7 id5tify pot5tial legislative *anges :i* may be appropriate to mitigate problems2 & 7vii7 ref] in/ances ( fraud1 wa/e1 & abuse1 & violations ( law to ! ,(fice ( ! ,treasury ,inspector ,g5]al = ,tax ,adm9i/ration4 7,c7 ,removal ,if ! ,p>ticipant & ,plan ,sponsor ,advocate is remov$ f (fice or is transf]r$ to ano!r position or location )9 ! ,int]nal ,rev5ue ,s]vice1 ! ,commission] %all communicate 9 writ+ ! reasons = any su* removal or transf] to ,congress n less ?an #cj days be=e ! removal or transf]4 ,no?+ 9 ?is p>agraph %all prohibit a p]sonnel action o!rwise au?oriz$ by law1 o!r ?an transf] or removal4 7,d7 ,comp5sation ,! annual rate ( basic pay = ! ,p>ticipant & ,plan ,sponsor ,advocate %all be ! same rate z ! highe/ rate ( basic pay e/abli%$ = ! ,s5ior ,executive ,s]vice "u section #echb ( title #e1 ,unit$ ,/ates ,code1 or1 if ! ,commission] s det]m9es1 at a rate fix$ "u section #iejc ( su* title4 7#c7 ,annual report 7,a7 ,9 g5]al ,n lat] ?an ,decemb] #ca ( ea* cal5d> ye>1 ! ,p>ticipant & ,plan ,sponsor ,advocate %all report to ! ,heal?1 ,education1 ,labor1 & ,p5sions ,committee ( ! ,s5ate1 ! ,committee on ,f9ance ( ! ,s5ate1 ! ,committee on ,education & ! ,work=ce ( ! ,h\se ( ,repres5tatives1 & ! ,committee on ,ways & ,means ( ! ,h\se ( ,repres5tatives on ! activities ( ! ,(fice ( ! ,p>ticipant & ,plan ,sponsor ,advocate dur+ ! fiscal ye> end+ dur+ su* cal5d> ye>4 7,b7 ,cont5t ,ea* report submitt$ "u subp>agraph 7,a7 %all-- 7i7 summ>ize ! assi/ance reque/s receiv$ f p>ticipants & plan sponsors & describe ! activities1 & evaluate ! effectiv5ess1 ( ! ,p>ticipant & ,plan ,sponsor ,advocate dur+ ! prec$+ ye>2 7ii7 id5tify significant problems ! ,p>ticipant & ,plan ,sponsor ,advocate has id5tifi$2 7iii7 include specific legislative & regulatory *anges to address ! problems2 & 7iv7 id5tify any actions tak5 to correct problems id5tifi$ 9 any previ\s report4 7,c7 ,concurr5t submission ,! ,p>ticipant & ,plan ,sponsor ,advocate %all submit a copy ( ea* report to ! ,secret>y ( ! ,treasury1 ! ,commission] ( ,int]nal ,rev5ue1 & any o!r appropriate (ficial at ! same "t su* report is submitt$ to ! committees ( ,congress "u subp>agraph 7,a74 4 7b7 ,effective date ,! am5dm5t made by ?is section %all take effect on ,janu>y #a1 #bjad4