,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #dcgf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #b1 #bjad ,mr4 
,braley ( ,i[a 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 modify safe    
h>bor requirem5ts applicable to         
automatic contribution arrangem5ts1 & = 
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,retirem5t ,security   
,act ( #bjad4  #b4 ,elim9ation (        
dis9c5tive to pool+ = multiple employ]  
plans  7a7 ,9 g5]al ,n lat] ?an "o ye>  
aft] ! date ( ! enactm5t ( ?is ,act1 !  
,secret>y ( ! ,treasury %all prescribe  
f9al regulations "u :i* a plan describ$ 
9 section #dac7;c7 ( ! ,int]nal ,rev5ue 
,code ( #aihf may be treat$ z satisfy+ !
 qualification requirem5ts ( section    

#dja7;a7 ( su* ,code despite ! violation
 ( su* requirem5ts ) respect to "o or m 
p>ticipat+ employ]s4 ,su* rules may     
require t ! portion ( ! plan            
attributable to su* p>ticipat+ employ]s 
be spun (f to plans ma9ta9$ by su*      
employ]s4  #c4 ,modification ( ,,erisa  
rules relat+ to multiple employ] def9$  
contribution plans  7a7 ,9 g5]al  7#a7  
,requirem5t ( common int]e/ ,section    
#c7b7 ( ! ,employee ,retirem5t ,income  
,security ,act ( #aigd is am5d$ by add+ 
at ! end ! foll[+3  7,c7  7i7 ,a        
qualifi$ multiple employ] plan %all n   
fail to be treat$ z an employee p5sion  
b5efit plan or p5sion plan solely       
because ! employ]s sponsor+ ! plan %>e  
no common int]e/4  7ii7 ,= purposes (   
?is subp>agraph1 ! t]m qualifi$ multiple
 employ] plan means a plan describ$ 9   
section #dac7;c7 ( ! ,int]nal ,rev5ue   
,code ( #aihf :i*--  7,i7 is an         
individual acc\nt plan ) respect to :i* 
! requirem5ts ( clauses 7iii71 7iv71 &  
7v7 are met1 &  7,,ii7 includes 9 its   

annual report requir$ to be fil$ "u     
section #ajd7;a7 ! "n & id5tify+        
in=mation ( ea* p>ticipat+ employ]4     
7iii7 ,! requirem5ts ( ?is clause are   
met if1 "u ! plan1 ea* p>ticipat+       
employ] reta9s fiduci>y responsibility  
=--  7,i7 ! selection & monitor+ ( !    
nam$ fiduci>y1 &  7,,ii7 ! inve/m5t &   
managem5t ( ! portion ( ! plan's assets 
attributable to employees ( ! employ] to
 ! ext5t n o!rwise delegat$ to ano!r    
fiduci>y4  7iv7 ,! requirem5ts ( ?is    
clause are met if1 "u ! plan1 a         
p>ticipat+ employ] is n subject to      
unreasonable re/rictions1 fees1 or      
p5alties by reason ( ceas+ p>ticipation 
91 or o!rwise transf]r+ assets f1 !     
plan4  7v7 ,! requirem5ts ( ?is clause  
are met if ea* p>ticipat+ employ] 9 !   
plan is an eligible employ] z def9$ 9   
section #djh7p77#b77;,c77i7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf1 appli$--  7,i7  
by sub/itut+ #ejj = #ajj 9 subclause    
7,i7 !re(1  7,,ii7 by sub/itut+ #e = #b 
ea* place x appe>s 9 subclause 7,,ii7   

!re(1 &  7,,iii7 )\t reg>d to ! la/     
s5t5ce ( subclause 7,,ii7 !re(4  4  7#b7
 ,simplifi$ report+ = small multiple    
employ] plans ,section #ajd7;a7 ( su*   
,act 7#bi ,u4,s4,c4 #ajbd7;a77 is am5d$ 
by add+ at ! end ! foll[+3  7#g7  7,a7  
,9 ! case ( any eligible small multiple 
employ] plan1 ! ,secret>y may by        
regulation--  7i7 prescribe simplifi$   
summ>y plan descriptions1 annual        
reports1 & p5sion b5efit /atem5ts =     
purposes ( section #ajb1 #ajc1 or #aje1 
respectively1 &  7ii7 waive ! requirem5t
 "u section #ajc7;a77#c7 to engage an   
indep5d5t qualifi$ public acc\ntant 9   
cases :]e ! ,secret>y det]m9es x        
appropriate4  7,b7 ,= purposes ( ?is    
p>agraph1 ! t]m eligible small multiple 
employ] plan means1 ) respect to any    
plan ye>--  7i7 a qualifi$ multiple     
employ] plan1 z def9$ 9 section         
#c7b77;,c77ii71 or  7ii7 any o!r plan   
describ$ 9 section #dac7;c7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf t satisfies !    
requirem5ts ( clause 7v7 ( section      

#c7b77;,c74  4  7b7 ,effective date ,!  
am5dm5ts made by ?is section %all apply 
to ye>s beg9n+ aft] ,decemb] #ca1 #bjad4
  #d4 ,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 (--  7,i7 #ajj    
p]c5t ( ! elective contributions ( !    
employee to ! ext5t t su* contributions 
d n exce$ #a p]c5t ( comp5sation1       
7,,ii7 #ej p]c5t ( s mu* ( su*          
contributions z exce$ #a p]c5t b d n    
exce$ #f p]c5t ( comp5sation1 plus      
7,,iii7 #be p]c5t ( s mu* ( su*         

contributions z exce$ #f 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 ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ by r$esignat+    
p>agraph 7#ac7 z p>agraph 7#ad7 & by    
ins]t+ aft] p>agraph 7#ab7 ! foll[+ new 
p>agraph3  7#ac7 ,alt]native me?od =    
secure def]ral arrangem5ts ,a def9$     
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         
,effective date ,! am5dm5ts made by ?is 
section %all apply to plan ye>s beg9n+  
aft] ,decemb] #ca1 #bjad4  #e4 ,cr$it = 
employ]s ) respect to modifi$ safe h>bor
 requirem5ts  7a7 ,9 g5]al ,subp>t ,d ( 
"p ,,iv ( sub*apt] ,a ( *apt] #a ( !    
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#de,s4 ,cr$it = small employ]s ) respect
 to modifi$ safe h>bor requirem5ts =    
automatic contribution arrangem5ts  7a7 
,g5]al rule ,= purposes ( section #ch1 9
 ! case ( a small employ]1 ! safe h>bor 
adoption cr$it det]m9$ "u ?is section = 
any taxable ye> is ! am\nt equal to !   

total ( ! employ]'s mat*+ contributions 
"u section #dja7k77#ad77;,d7 dur+ !     
taxable ye> on behalf ( employees :o are
 n highly comp5sat$ employees1 subject  
to ! limitations ( subsection 7b74  7b7 
,limitations  7#a7 ,limitation ) respect
 to comp5sation ,! cr$it det]m9$ "u     
subsection 7a7 ) respect to             
contributions made on behalf ( an       
employee :o is n a highly comp5sat$     
employee %all n exce$ #b p]c5t ( !      
comp5sation ( su* employee = ! taxable  
ye>4  7#b7 ,limitation ) respect to ye>s
 ( p>ticipation ,cr$it %all be det]m9$  
"u subsection 7a7 ) respect to          
contributions made on behalf ( an       
employee :o is n a highly comp5sat$     
employee only dur+ ! fir/ #e ye>s su*   
employee p>ticipates 9 ! qualifi$       
automatic contribution arrangem5t4  7c7 
,def9itions  7#a7 ,9 g5]al ,any t]m us$ 
9 ?is section :i* is also us$ 9 section 
#dja7k77#ad7 %all h ! same mean+ z :5   
us$ 9 su* section4  7#b7 ,small employ] 
,! t]m small employ] means an eligible  

employ] 7z def9$ 9 section              
#djh7p77#b77;,c77i774  7d7 ,d5ial (     
d\ble b5efit ,no d$uction %all be       
all[able "u ?is title = any contribution
 ) respect to :i* a cr$it is all[$ "u   
?is section4  4  7b7 ,cr$it ,to be "p ( 
g5]al bus9ess cr$it ,subsection 7b7 (   
section #ch ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$--  7#a7 by /rik+ plus at
 ! end ( p>agraph 7#ce71  7#b7 by /rik+ 
! p]iod at ! end ( p>agraph 7#cf7 &     
ins]t+ 1 plus1 &  7#c7 by add+ at ! end 
! foll[+ new p>agraph3  7#cg7 ! safe    
h>bor adoption cr$it det]m9$ "u section 
#de,s4  4  7c7 ,cl]ical am5dm5t ,! table
 ( sections = subp>t ,d ( "p ,,iv (     
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
aft] ! item relat+ to section #de,r !   
foll[+ new item3  ,sec4 #de,s4 ,cr$it = 
small employ]s ) respect to modifi$ safe
 h>bor requirem5ts = automatic          
contribution arrangem5ts4  4  7d7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s t    

include any portion ( a plan ye> beg9n+ 
aft] ,decemb] #ca1 #bjad4  #f4          
,modification ( regulations ,! ,secret>y
 ( ! ,treasury %all promulgate          
regulations or o!r guidance t--  7#a7   
simplify & cl>ify ! rules reg>d+ ! tim+ 
( p>ticipant notices requir$ "u section 
#dja7k77#ac77;,e7 ( ! ,int]nal ,rev5ue  
,code ( #aihf1 ) specific application   
to--  7,a7 plans t all[ employees to be 
eligible = p>ticipation imm$iately ^u   
beg9n+ employm5t1 &  7,b7 employ]s )    
multiple payroll & adm9i/rative sy/ems1 
&  7#b7 simplify & cl>ify ! automatic   
escalation rules "u sections            
#dja7k77#ac77;,c77iii7 &                
#dja7k77#ad77;,c7 ( ! ,int]nal ,rev5ue  
,code ( #aihf 9 ! context ( employ]s )  
multiple payroll & adm9i/rative sy/ems4 
,su* regulations or guidance %all       
address ! p>ticul> case ( employees )9 !
 same plan :o are subject to diff]5t    
notice tim+ & diff]5t p]c5tage          
requirem5ts1 & provide assi/ance = plan 
sponsors 9 manag+ su* cases4  #g4       

,opportunity to claim ! sav]'s cr$it on 
,=m #ajdj;,,ez ,! ,secret>y ( !         
,treasury %all modify ! =ms = ! return (
 tax ( individuals 9 ord] to all[       
individuals claim+ ! cr$it "u section   
#be;,b ( ! ,int]nal ,rev5ue ,code (     
#aihf to file 7& claim su* cr$it on7 ,=m
 #ajdj;,,ez4