,,ii #aac? ,,congress #a/ ,session ,s4 #abgj ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #i1 #bjac ,mr4 ,hat* introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to provide = re=m ( public & private p5sion plans1 & = o!r purposes4 #a4 ,%ort title2 am5dm5t ( #aihf ,code2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,secure ,annuities = ,employee ,retirem5t ,act ( #bjac or ! ,,safe ,retirem5t ,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 z foll[s3 ,sec4 #a4 ,%ort title2 am5dm5t ( #aihf ,code2 table ( cont5ts4 ,,title ,i--,public p5sion re=m ,sec4 #aja4 ,annuity accumulation retirem5t plans ( employees ( ,/ate & local gov]nm5ts4 ,sec4 #ajb4 ,/udy ( ,f$]al p5sion sy/ems4 ,,title ,,ii--,private p5sion re=m ,subtitle ,a--,enhanc$ p5sion plan cov]age ,sec4 #bja4 ,/>t] #dja7k7 plans = employ]s ) no retirem5t plan4 ,sec4 #bjb4 ,increase 9 cr$it limitation = small employ] p5sion plan />tup co/s4 ,sec4 #bjc4 ,employ]s all[$ to replace simple retirem5t acc\nts ) safe h>bor #dja7k7 plans dur+ a ye>4 ,sec4 #bjd4 ,modification ( automatic enrollm5t safe h>bor4 ,sec4 #bje4 ,plan adopt$ by fil+ due date = ye> may be treat$ z 9 effect z ( close ( ye>4 ,sec4 #bjf4 ,rules relat+ to election ( safe h>bor #dja7k7 /atus4 ,sec4 #bjg4 ,modifications ( rules relat+ to multiple employ] def9$ contribution plans4 ,subtitle ,b--,p5sion plan & retirem5t sav+s simplification ,sec4 #baa4 ,modifications ( deadl9es = adopt+ p5sion plan am5dm5ts4 ,sec4 #bab4 ,t]m9ation ( application ( top-heavy plan rules4 ,sec4 #bac4 ,am5dm5ts to safe h>bor #dja7k7 plans dur+ plan ye>4 ,sec4 #bad4 ,modification ( rules relat+ to h>d%ip )drawals f ca% or def]r$ arrangem5ts4 ,sec4 #bae4 ,individual may roll ov] insurance contract into individual retirem5t acc\nt4 ,sec4 #baf4 ,=feitures allocat$ to p>ticipant's acc\nt may be treat$ z employ] mat*+ or nonelective contributions4 ,sec4 #bag4 ,"t = provid+ explanation ( qualifi$ pr]etirem5t survivor annuity4 ,sec4 #bah4 ,modifications ( additional p>ticipation requirem5ts = def9$ b5efit plans4 ,sec4 #bai4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans4 ,sec4 #bbj4 ,secure def]ral arrangem5ts4 ,sec4 #bba4 ,portability ( lifetime income options4 ,sec4 #bbb4 ,consolidation ( def9$ contribution plan notices4 ,sec4 #bbc4 ,p]=mance b5*m>ks = asset allocation funds4 ,subtitle ,c--,longevity re=ms ,sec4 #bca4 ,modification ( requir$ m9imum di/ribution rules :]e portion ( b5efit ( def9$ contribution plan is annuitiz$4 ,sec4 #bcb4 ,updat+ ( mortality tables = m9imum requir$ di/ributions4 ,sec4 #bcc4 ,m9imum requir$ di/ributions may be roll$ ov] into ,ro? ,i,r,as4 ,sec4 #bcd4 ,transf] ( m9imum survivor annuity requirem5ts f plan sponsors to annuity provid]s4 ,sec4 #bce4 ,expansion ( ,employee ,plans ,compliance ,resolution ,sy/em4 ,subtitle ,d--,modifications to ! ,employee ,retirem5t ,income ,security ,act ( #aigd ,sec4 #bda4 ,electronic communication ( p5sion plan in=mation4 ,sec4 #bdb4 ,modification ( deadl9es = summ>y plan description updates4 ,sec4 #bdc4 ,modification ( small plan simplifi$ report+ requirem5ts4 ,sec4 #bdd4 ,fiduci>y requirem5t reg>d+ selection ( annuity provid] & annuity contract4 ,,title ,,iii--,individual retirem5t inve/m5t advice re=m ,sec4 #cja4 ,transf] to ,secret>y ( ! ,treasury ( au?orities reg>d+ individual retirem5t plans4 ,i ,public p5sion re=m #aja4 ,annuity accumulation retirem5t plans ( employees ( ,/ate & local gov]nm5ts 7a7 ,9 g5]al ,"p ,i ( sub*apt] ,d ( *apt] #a is am5d$ by ins]t+ aft] subp>t ,e ! foll[+ new subp>t3 ,f ,annuity accumulation retirem5t plans = ,/ate & local gov]nm5t employees4 ,sec4 #dbj;,a4 ,annuity accumulation retirem5t plans4 #dbj;,a4 ,annuity accumulation retirem5t plans 7a7 ,annuity accumulation retirem5t plans ,= purposes ( ?is subp>t-- 7#a7 ,9 g5]al ,! t]m annuity accumulation retirem5t plan means a ,/ate or local gov]nm5tal retirem5t plan-- 7,a7 :i* provides = ! pur*ase1 n less frequ5tly ?an annually1 ( a qualifi$ individual def]r$ fix$ income annuity contract = ea* p>ticipant :i* provides b5efits bas$ solely on ! contributions by an employ] to an annuity provid] & ! actu>ial assumptions specifi$ 9 ! annuity contract1 & 7,b7 :i* provides t-- 7i7 no contributions may be made "u ! plan o!r ?an contributions describ$ 9 subsection 7c71 7ii7 contributions pursuant to ! plan on behalf ( any eligible employee = any plan ye>1 :e!r made annually or m frequ5tly1 are requir$ to be paid n lat] ?an #ij days aft] ! close ( ! plan ye> to an annuity provid] to pur*ase a qualifi$ individual def]r$ fix$ income annuity contract = ! employee1 & 7iii7 no b5efits are provid$ by ! employ] "u ! plan o!r ?an ! pur*ase ( qualifi$ individual def]r$ fix$ income annuity contracts = eligible employees4 ,subject to ! provisions ( subsection 7d77#c71 no?+ 9 subp>agraph 7,b77iii7 %all prohibit an employ] f e/abli%+ or ma9ta9+ a def9$ contribution plan or def9$ b5efit plan or provid+ any =m ( employee welf>e b5efit sep>ately f ! plan4 7#b7 ,plan /ructure ,a plan w n be treat$ z an annuity accumulation retirem5t plan unless-- 7,a7 b5efits "u ! plan are limit$ to a mon?ly paym5t = ! life ( ! p>ticipant1 comm5c+ at ! applicable age "u subsection 7b77#a77;,b71 z provid$ "u ! qualifi$ individual def]r$ fix$ income annuity contract pur*as$ ) ! employ] contributions describ$ 9 subsection 7c7 & issu$ to ! p>ticipant1 & 7,b7 ! plan does n accumulate assets 9 tru/ or o!rwise1 & ! employ] has no own]%ip int]e/ 9 any qualifi$ individual def]r$ fix$ income annuity contract issu$ to a p>ticipant4 7#c7 ,requirem5ts = annuity contract pur*as+ process 7,a7 ,9 g5]al ,a plan w n be treat$ z an annuity accumulation retirem5t plan unless ! plan provides t individual def]r$ fix$ income annuity contracts w be pur*as$ ?r\gh a process by :i*1 ) respect to ea* pur*ase "u p>agraph 7#a77;,a71 ! plan adm9i/rator-- 7i7 obta9s competitive bids pursuant to a =mal1 public procurem5t process au?oriz$ "u ,/ate law :i* requires in/itutional pric+ on a gr\p contract basis f multiple annuity provid]s v]ifi$ by ! applicable ,/ate insurance regulator z prop]ly lic5s$ to meet ! specifications 9 ! procurem5t reque/1 7ii7 allocates its pur*ases ( individual def]r$ fix$ income annuity contracts among ! provid]s select$ "u clause 7i71 ) ! l>ge/ allocation 7n to exce$ #ge p]c5t ( ! aggregate pur*ase am\nt ( all su* contracts7 pur*as$ f ! annuity provid] submitt+ ! sup]ior bid1 7iii7 ensures1 to ! maximum ext5t possible1 t ea* employee's entire int]e/ "u an individual def]r$ fix$ income annuity contract w\ld be fully gu>ante$ by a ,/ate gu>anty association "u applicable ,/ate law1 regulations1 & indu/ry /&>ds 9 effect z ( ! date ( issuance ( ! contract1 & 7iv7 ensures1 to ! maximum ext5t possible1 t ea* employee's entire int]e/ "u all contracts provid$ "u ! plan by any s+le annuity provid] 7& any relat$ p>ties1 )9 ! mean+ ( su* t]m z appli$ by ! ,/ate gu>anty association7 does n exce$ ! maximum am\nt :i* w\ld be cov]$ by a ,/ate gu>anty association describ$ 9 clause 7iii7 9 case ( ! insolv5cy ( ! provid]4 7,b7 ,prohibition on provid+ b5efit 9 ex*ange = selection ,an annuity provid] %all n be treat$ z meet+ ! competitive bid requirem5ts ( subp>agraph 7,a77i7 if su* provid]1 or any relat$ p>ty to 7)9 ! mean+ ( su* t]m z appli$ by ! ,/ate gu>anty association7 or ag5t ( su* provid]1 on _! own or on ano!r's behalf1 provides any?+ ( value to any employee ( a ,/ate or local gov]nm5t entity1 or ag5cy or in/rum5tality !re(1 or to a plan adm9i/rator1 9 connection ) ! bidd+ process or ! annuity pur*ase process describ$ 9 subp>agraph 7,a74 7,c7 ,compliance safe h>bor ,a plan %all be deem$ to meet ! requirem5ts ( subp>agraph 7,a7 if ! plan adm9i/rator obta9s a det]m9ation 9 writ+ f ! ,(fice ( ,dome/ic ,f9ance1 ,dep>tm5t ( ! ,treasury1 t su* plan meets su* requirem5ts4 ,au?ority to issue su* a det]m9ation %all n be delegat$ to any entity outside ( ! ,(fice ( ,dome/ic ,f9ance4 7#d7 ,g5]al exemption f p5sion plan requirem5ts ,not)/&+ any o!r provision ( ?is sub*apt]-- 7,a7 except z provid$ 9 ?is section1 no requirem5t ( ?is sub*apt] o!rwise applicable to a ,/ate or local gov]nm5tal retirem5t plan %all apply to an annuity accumulation retirem5t plan1 & 7,b7 = purposes ( ?is title o!r ?an any su* requirem5ts1 an annuity accumulation retirem5t plan %all be treat$ z a def9$ b5efit plan :i* meets ! requirem5ts ( section #dja7;a74 7b7 ,qualifi$ individual def]r$ fix$ income annuity contract ,= purposes ( ?is subp>t1 ! t]m qualifi$ individual def]r$ fix$ income annuity contract means1 ) respect to an employee = any plan ye>1 an individual annuity contract issu$ by an annuity provid]-- 7#a7 "u ! t]ms ( :i*-- 7,a7 ! mon?ly annuity paym5ts dur+ ! p]iod describ$ 9 subp>agraph 7,b7 are 9 equal in/allm5ts & are fix$ at ! "t ( pur*ase1 & 7,b7 except z provid$ 9 subsection 7e71 ! entire int]e/ ( ! employee 9 ! contract w be di/ribut$ 9 ! =m ( mon?ly annuity paym5ts "u a s+le life annuity1 beg9n+ on ! lat] (-- 7i7 ! date ! employee atta9s age-- 7,i7 #eg1 9 ! case ( a public safety employee1 & 7,,ii7 #fg1 9 ! case ( any o!r employee1 or 7ii7 9 ! case ( a contract pur*as$ aft] ! date ! employee atta9s su* age1 ! #a/ day ( ! #a/ cal5d> ye> beg9n+ aft] ! cal5d> ye> 9 :i* su* contract 0 pur*as$1 7#b7 ! pur*ase price ( :i* is equal to ! contributions describ$ 9 subsection 7c7 ) respect to ! employee = ! plan ye> 9 :i* x is pur*as$1 7#c7 "u :i* ! employee's rights are non=feitable1 7#d7 "u :i* no loan may be made ) respect to any portion ( any int]e/ 9 ! contract1 & 7#e7 except z provid$ 9 subsection 7e71 no portion ( any int]e/ 9 ! contract may be assign$1 ali5at$1 or pl$g$ z collat]al4 7c7 ,contribution requirem5ts & limitations ,= purposes ( subsection 7a77#a77;,b7-- 7#a7 ,9 g5]al ,! plan mu/ provide t ! only contributions :i* may be made pursuant to ! plan = any plan ye> are nonelective contributions 7)9 ! mean+ ( section #dja7k77#aa77;,b77ii77 made by ! employ] = ! pur*ase ( qualifi$ individual def]r$ fix$ income annuity contracts :i* are-- 7,a7 made on behalf ( ea* eligible employee = ! plan ye>1 & 7,b7 equal to a p]c5tage ( ! employee's comp5sation :i* 7except z provid$ 9 ?is p>agraph7 is det]m9$ n lat] ?an ! />t ( ! plan ye>4 ,an employ] %all n be treat$ z fail+ to meet ! requirem5ts ( ?is p>agraph m]ely because ! plan all[s ! employ] to elect to r$uce ! p]c5tage "u subp>agraph 7,b71 or n to make any contributions pursuant to ! plan1 = any p]iod = all employees1 & ! employ] s elects n lat] ?an ! />t ( ! plan ye>4 7#b7 ,limits bas$ on comp5sation 7,a7 ,9 g5]al ,! comp5sation 7z det]m9$ = purposes ( section #dae7;c77 tak5 into acc\nt "u p>agraph 7#a77;,b7 ) respect to an employee = any ye> %all n exce$ ! limitation 9 effect = su* ye> "u section #dja7;a77#ag74 7,b7 ,p]c5tage limitation 7i7 ,9 g5]al ,! p]c5tage "u p>agraph 7#a77;,b7 = any p]iod %all n exce$-- 7,i7 #cj p]c5t 9 ! case ( a public safety employee1 or 7,,ii7 #bj p]c5t 9 ! case ( any o!r employee4 7ii7 ,election ( high] p]c5tage = employees #ej or old] ,a plan may elect = any plan ye> to provide a high] p]c5tage "u p>agraph 7#a77;,b7 ?an t specifi$ "u clause 7i7 = all employees :o h atta9$ age #ej be=e ! beg9n+ ( a plan ye>1 except t su* p]c5tage may n exce$-- 7,i7 #ce p]c5t 9 ! case ( a public safety employee :o has atta9$ su* age1 or 7,,ii7 #be p]c5t 9 ! case ( any o!r employee :o has atta9$ su* age4 7,c7 ,aggregation rule ,all plans ( an employ] treat$ z a s+le plan = purposes ( section #dae %all be treat$ z a s+le plan = purposes ( ?is p>agraph4 7d7 ,tax treatm5t ( annuity accumulation retirem5t plans 7#a7 ,taxation ( eligible employee ,! am\nt actually paid to a di/ributee "u a qualifi$ individual def]r$ fix$ income annuity contract %all be taxable to ! di/ributee "u section #gb4 7#b7 ,treatm5t ( employ] contributions ,contributions made by an employ] = ! pur*ase ( a qualifi$ individual def]r$ fix$ income annuity contract "u an annuity accumulation retirem5t plan %all be exclud$ f ! gross income ( ! employee4 7#c7 ,inclusion 9 income ( excess contributions or contributions = p>ticipants 9 ano!r def9$ b5efit plan ( an employ] 7,a7 ,excess contributions ,except z provid$ 9 subp>agraph 7,b71 if-- 7i7 contributions are made = any plan ye> by an employ] on behalf ( an employee 9 excess ( ! limit det]m9$ aft] application ( subsection 7c77#b71 ! employee %all include 9 gross income an am\nt equal to su* excess1 or 7ii7 an employee = :om su* contributions are made = any plan ye> accrues b5efits 7= any p]iod ( s]vice = :i* su* contributions 7 made7 "u any o!r def9$ b5efit plan ( ! employ] :i* is n an annuity accumulation retirem5t plan1 ! employee %all include 9 gross income an am\nt equal to su* contributions4 7,b7 ,exception = premiums refund$ ,subp>agraph 7,a7 %all n apply ) respect to contributions on behalf ( an employee = any plan ye> if1 n lat] ?an #f mon?s aft] ! la/ day ( ! plan ye>1 ! contributions describ$ 9 subp>agraph 7,a7 us$ to pur*ase a qualifi$ individual def]r$ fix$ income annuity contract = ! employee are refund$ to ! employ]4 7,c7 ,taxable ye> ( inclusion ,any am\nt "u subp>agraph 7,a7 %all be includible 9 gross income ( ! employee = ! taxable ye> :i* includes ! date :i* is #f mon?s aft] ! la/ day ( ! plan ye>4 7,d7 ,inve/m5t 9 ! contract ,any am\nt includ$ 9 gross income %all n be treat$ z inve/m5t 9 ! contract = purposes ( section #gb4 7e7 ,c]ta9 judgm5ts & settlem5ts ,p>agraphs 7#a77;,b7 & 7#e7 ( subsection 7b7 %all n apply to any (fset ( an employee's b5efits payable "u an annuity contract-- 7#a7 pursuant to-- 7,a7 ! en=cem5t ( a levy "u section #fcca or ! collection by ! ,unit$ ,/ates ( a judgm5t result+ f an unpaid tax assessm5t1 or 7,b7 ! en=cem5t ( a f9e impos$ z "p ( a crim9al s5t5ce "u sub*apt] ,c ( *apt] #bbg ( title #ah1 ,unit$ ,/ates ,code1 or an ord] ( re/itution made pursuant to su* title1 or 7#b7 to ! ext5t requir$ "u any ,/ate tax1 crim9al1 or dome/ic relations law4 7f7 ,def9itions 7#a7 ,/ate or local gov]nm5tal retirem5t plan ,= purposes ( ?is section1 ! t]m ,/ate or local gov]nm5tal retirem5t plan means a gov]nm5tal plan provid+ = ! def]ral ( comp5sation :i* is e/abli%$ & ma9ta9$ = its employees by a ,/ate1 a political subdivision ( a ,/ate1 or an ag5cy or in/rum5tality ( a ,/ate or a political subdivision ( a ,/ate4 7#b7 ,g5]al def9itions ,= purposes ( ?is sub*apt]-- 7,a7 ,eligible employee ,! t]m eligible employee means1 ) respect to any ,/ate or local gov]nm5tal retirem5t plan1 any (fic] or employee 7o!r ?an a contractor7 eligible to p>ticipate 9 ! plan4 7,b7 ,annuity provid] ,! t]m annuity provid] means any company :i* is lic5s$ to d bus9ess z a life insurance company "u ! laws ( ! ,/ate 9 :i* a qualifi$ individual def]r$ fix$ income annuity contract to :i* ?is sub*apt] applies is to be issu$4 7,c7 ,public safety employee ,! t]m public safety employee means any employee ( a ,/ate or political subdivision ( a ,/ate :o provides police protection1 firefight+ s]vices1 or em]g5cy m$ical s]vices = any area )9 ! jurisdiction ( su* ,/ate or political subdivision4 4 7b7 ,limitation on #djc7;a7 annuity plans ( ,/ate & local gov]nm5ts 7#a7 ,9 g5]al ,subsection 7a7 ( section #djc is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#f7 ,exclusion ( c]ta9 ,/ate & local gov]nm5tal plans ,?is subsection %all n apply 9 ! case ( annuity contracts pur*as$ "u a ,/ate or local gov]nm5tal retirem5t plan 7z def9$ 9 section #dbj;,a7f77 :i* 0 e/abli%$ aft] ,july #h1 #bjac4 4 7#b7 ,effective date ,! am5dm5t made by ?is subsection %all apply to plans e/abli%$ aft] ,july #h1 #bjac4 7c7 ,,fica exemption ,p>agraph 7#e7 ( section #caba7;a7 is am5d$ by /rik+ or at ! end ( subp>agraph 7,h71 by /rik+ ! semicolon at ! end ( subp>agraph 7,i7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new subp>agraph3 7,j7 "u an annuity accumulation retirem5t plan = ! pur*ase ( annuity contracts "u section #dbj;,a2 4 7d7 ,inclusion ( am\nt = ! pur*ase ( annuity contracts on ,w-#b ,subsection 7a7 ( section #fjea is am5d$ by /rik+ & at ! end ( p>agraph 7#ac71 by /rik+ ! p]iod at ! end ( p>agraph 7#ad77;,b7 & ins]t+ 1 &1 & by ins]t+ aft] p>agraph 7#ad7 ! foll[+ new p>agraph3 7#ae7 ! total am\nt contribut$ "u an annuity accumulation retirem5t plan = ! pur*ase ( annuity contracts "u section #dbj;,a4 4 7e7 ,cl]ical am5dm5t ,! table ( subp>ts = "p ,i ( sub*apt] ,d ( *apt] #a is am5d$ by ins]t+ aft] ! item relat+ to subp>t ,e ! foll[+ new item3 ,,subp>t ,f--,annuity accumulation retirem5t plans = ,/ate & local gov]nm5t employees 4 7f7 ,effective date ,except z provid$ 9 subsection 7b71 ! am5dm5ts made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjad4 #ajb4 ,/udy ( ,f$]al p5sion sy/ems 7a7 ,/udy ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all conduct a /udy ( p5sion sy/ems e/abli%$ by law = employees ( ! ,gov]nm5t ( ! ,unit$ ,/ates1 includ+ an analysis (-- 7#a7 ! b5efits provid$ "u su* sy/ems1 p>ticul>ly 9 comp>ison to ^? (f]$ to private employees1 & 7#b7 :e!r su* sy/ems are adequately fund$4 7b7 ,report ,! ,comptroll] ,g5]al ( ! ,unit$ ,/ates %all1 n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 report to ,congress ! results ( ! /udy conduct$ "u subsection 7a71 includ+ any recomm5dations = legislative or adm9i/rative *anges to ! p5sion sy/ems consid]$ 9 ! /udy4 ,,ii ,private p5sion re=m ,a ,enhanc$ p5sion plan cov]age #bja4 ,/>t] #dja7k7 plans = employ]s ) no retirem5t plan 7a7 ,9 g5]al ,section #dja7k7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ad7 ,/>t] #dja7k7 def]ral-only plans = employ]s ) no retirem5t plan 7,a7 ,9 g5]al ,a />t] #dja7k7 def]ral-only arrangem5t ma9ta9$ by an eligible employ] %all be treat$ z meet+ ! requirem5ts ( p>agraph 7#c77;,a77ii74 7,b7 ,/>t] #dja7k7 def]ral-only arrangem5t ,= purposes ( ?is p>agraph1 ! t]m />t] #dja7k7 def]ral-only arrangem5t means any ca% or def]r$ arrangem5t :i* meets-- 7i7 ! automatic def]ral requirem5ts ( subp>agraph 7,c71 7ii7 ! contribution limitations ( subp>agraph 7,d71 & 7iii7 ! requirem5ts ( subp>agraph 7,e7 ( p>agraph 7#ac74 7,c7 ,automatic def]ral 7i7 ,9 g5]al ,! requirem5ts ( ?is subp>agraph are met if1 "u ! arrangem5t1 ea* employee eligible to p>ticipate 9 ! arrangem5t is treat$ z hav+ elect$ to h ! employ] make elective contributions 9 an am\nt equal to a qualifi$ p]c5tage ( comp5sation4 7ii7 ,election out ,! election treat$ z hav+ be5 made "u clause 7i7 %all cease to apply ) respect to any employee if su* employee makes an affirmative election-- 7,i7 to n h su* contributions made1 or 7,,ii7 to make elective contributions at a level specifi$ 9 su* affirmative election4 7iii7 ,qualifi$ p]c5tage ,= purposes ( ?is subp>agraph1 ! t]m qualifi$ p]c5tage means1 ) respect to any employee1 any p]c5tage det]m9$ "u ! arrangem5t if su* p]c5tage is appli$ uni=mly & is n less ?an #c or m ?an #ae p]c5t4 7,d7 ,contribution limitations 7i7 ,9 g5]al ,! requirem5ts ( ?is subp>agraph are met if1 "u ! arrangem5t-- 7,i7 ! only contributions :i* may be made are elective contributions ( employees describ$ 9 subp>agraph 7,c71 & 7,,ii7 ! aggregate am\nt ( su* elective contributions :i* may be made ) respect to any employee = any cal5d> ye> %all n exce$ #h1jjj4 7ii7 ,co/-(-liv+ adju/m5t ,9 ! case ( any cal5d> ye> beg9n+ aft] ,decemb] #ca1 #bjad1 ! #h1jjj am\nt "u clause 7i7 %all be adju/$ 9 ! same mann] z "u section #djb7;g77#d71 except t #bjac %all be sub/itut$ = #bjje4 7iii7 ,cross ref]5ce ,= cat*-up contributions = individuals age #ej or ov]1 see section #dad7v77#b77;,b77ii74 7,e7 ,eligible employ] ,= purposes ( ?is p>agraph-- 7i7 ,9 g5]al ,! t]m eligible employ] means any employ] :i*1 dur+ ! fir/ plan ye> ( ! ca% or def]r$ arrangem5t describ$ 9 subp>agraph 7,b71 does n ma9ta9 any o!r qualifi$ plan4 ,an employ] treat$ z an eligible employ] "u ! prec$+ s5t5ce %all be treat$ z an eligible employ] ) respect to ! arrangem5t = any subsequ5t plan ye> )\t reg>d to :e!r x ma9ta9s ano!r qualifi$ plan4 7ii7 ,qualifi$ plan ,! t]m qualifi$ plan means a plan1 contract1 p5sion1 acc\nt1 or tru/ describ$ 9 subp>agraph 7,a7 or 7,b7 ( p>agraph 7#e7 ( section #bai7;g7 7det]m9$ )\t reg>d to ! la/ s5t5ce ( su* p>agraph 7#e774 4 7b7 ,cat*-,up contributions = individuals age #ej & ov] 7#a7 ,section #dad7v77#b77;,b7 is am5d$ by ins]t+ 1 #dja7k77#ad71 aft] #dja7k77#aa7 ea* place x appe>s4 7#b7 ,section #dad7v77#c77;,b7 is am5d$ by ins]t+ #dja7k77#ad71 aft] #dja7k77#aa714 7c7 ,simplifi$ report+ ,section #ajd7;a77#b77;,a7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7;a77#b77 is am5d$ by ins]t+ or = any p5sion plan :i* is a />t] #dja7k7 def]ral-only arrangem5t describ$ 9 section #dja7k77#ad77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf be=e ! p]iod at ! end4 7d7 ,/>t] plans n treat$ z top-,heavy plans ,clause 7i7 ( section #daf7;g77#d77;,h7 is am5d$ by /rik+ or #dja7k77#ac7 & ins]t+ #dja7k77#ac71 or #dja7k77#ad74 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bjb4 ,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 #bjc4 ,employ]s all[$ to replace simple retirem5t acc\nts ) safe h>bor #dja7k7 plans dur+ a ye> 7a7 ,9 g5]al ,section #djh7p7 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#aa7 ,replacem5t ( simple retirem5t acc\nts ) safe h>bor plans dur+ plan ye> 7,a7 ,9 g5]al ,subject to ! requirem5ts ( ?is p>agraph1 an employ] may elect 79 su* =m & mann] z ! ,secret>y may prescribe7 at any "t dur+ a ye> to t]m9ate ! qualifi$ sal>y r$uction arrangem5t "u p>agraph 7#b71 b only if ! employ] e/abli%es & ma9ta9s 7z ( ! day aft] ! t]m9ation date7 a safe h>bor plan to replace ! t]m9at$ arrangem5t4 7,b7 ,comb9$ limits on contributions ,! t]m9at$ arrangem5t & safe h>bor plan %all bo? be treat$ z violat+ ! requirem5ts ( p>agraph 7#b77;,a77ii7 or section #dja7;a77#cj7 7:i*ev] is applicable7 if ! aggregate elective contributions ( ! employee "u ! t]m9at$ arrangem5t dur+ its la/ plan ye> & "u ! safe h>bor plan dur+ its transition ye> exce$ ! sum (-- 7i7 ! applicable doll> am\nt = su* arrangem5t 7det]m9$ on a full-ye> basis7 ) respect to ! employee = su* la/ plan ye> multipli$ by a fraction equal to ! numb] ( days 9 su* plan ye> divid$ by #cfe1 & 7ii7 ! applicable doll> am\nt 7z s det]m9$7 = su* safe h>bor plan on su* elective contributions dur+ ! transition ye> multipli$ by a fraction equal to ! numb] ( days 9 su* transition ye> divid$ by #cfe4 7,c7 ,applicable doll> am\nt ,! applicable doll> am\nt is ! am\nt det]m9$ "u p>agraph 7#b77;,a77ii7 7aft] ! application ( section #dad7v77 or section #djb7;g77#a71 :i*ev] is applicable4 7,d7 ,transition ye> ,= purposes ( ?is p>agraph1 ! transition ye> is ! p]iod beg9n+ aft] ! t]m9ation date & end+ on ! la/ day ( ! cal5d> ye> dur+ :i* ! t]m9ation occurs4 7,e7 ,safe h>bor plan ,= purposes ( ?is p>agraph1 ! t]m safe h>bor plan means a qualifi$ ca% or def]r$ arrangem5t :i* meets ! requirem5ts ( p>agraph 7#aa71 7#ab71 or 7#ac7 ( section #dja7k74 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bjd4 ,modification ( automatic enrollm5t safe h>bor 7a7 ,removal ( #aj p]c5t cap aft] #a/ plan ye> 7#a7 ,9 g5]al ,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 #bje4 ,plan adopt$ by fil+ due date = ye> may be treat$ z 9 effect z ( close ( ye> 7a7 ,9 g5]al ,section #dja7;b71 z am5d$ by section #baa ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 7#d7 ,adoption ( plan ,if an employ] adopts a /ock bonus1 p5sion1 pr(it-%>+1 or annuity plan aft] ! close ( a taxable ye> b be=e ! "t prescrib$ by law = fil+ ! return ( ! employ] = ! taxable ye> 7includ+ ext5sions !re(71 ! employ] may elect to treat ! plan z hav+ be5 adopt$ z ( ! la/ day ( ! taxable ye>4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plans adopt$ = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bjf4 ,rules relat+ to election ( safe h>bor #dja7k7 /atus 7a7 ,limitation ( annual safe h>bor notice to mat*+ contribution plans 7#a7 ,9 g5]al ,subp>agraph 7,a7 ( section #dja7k77#ab7 is am5d$ by /rik+ if su* arrangem5t & all t foll[s & ins]t+ 8if su* arrangem5t-- 7i7 meets ! contribution requirem5ts ( subp>agraph 7,b7 & ! notice requirem5ts ( subp>agraph 7,d71 or 7ii7 meets ! contribution requirem5ts ( subp>agraph 7,c74 4 7#b7 ,automatic contribution arrangem5ts ,subp>agraph 7,b7 ( section #dja7k77#ac7 is am5d$ by /rik+ means & all t foll[s & ins]t+ 8means a ca% or def]r$ arrangem5t-- 7,a7 :i* is describ$ 9 subp>agraph 7,d77i77,i7 & meets ! applicable requirem5ts ( subp>agraphs 7,c7 ?r\gh 7,e71 or 7,b7 :i* is describ$ 9 subp>agraph 7,d77i77,,ii7 & meets ! applicable requirem5ts ( subp>agraphs 7,c7 & 7,d74 4 7b7 ,nonelective contributions ,section #dja7k77#ab7 is am5d$ by r$esignat+ subp>agraph 7,f7 z subp>agraph 7,g71 & by ins]t+ aft] subp>agraph 7,e7 ! foll[+ new subp>agraph3 7,f7 ,tim+ ( plan am5dm5t = employ] mak+ nonelective contributions 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 a plan may be am5d$ aft] ! beg9n+ ( a plan ye> to provide t ! requirem5ts ( subp>agraph 7,c7 %all apply to ! arrangem5t = ! plan ye>1 b only if ! am5dm5t is adopt$-- 7,i7 at any "t be=e ! #cj? day be=e ! close ( ! plan ye>1 or 7,,ii7 if ! requirem5ts ( clause 7iii7 are met1 at any "t be=e ! la/ day "u p>agraph 7#h77;,a7 = di/ribut+ excess contributions = ! plan ye>4 7ii7 ,exception :]e plan provid$ = mat*+ contributions ,clause 7i7 %all n apply to any plan ye> if ! plan provid$ at any "t dur+ ! plan ye> t ! requirem5ts ( subp>agraph 7,b7 appli$ to ! plan ye>4 7iii7 #d-p]c5t contribution requirem5t ,clause 7i77,,ii7 %all n apply to an arrangem5t unless ! am\nt ( ! contributions describ$ 9 subp>agraph 7,c7 :i* ! employ] is requir$ to make "u ! arrangem5t = ! plan ye> ) respect to any employee is an am\nt equal to at lea/ #d p]c5t ( ! employee's comp5sation4 4 7c7 ,automatic contribution arrangem5ts ,section #dja7k77#ac7 is am5d$ by add+ at ! end ! foll[+ 3 7,f7 ,tim+ ( plan am5dm5t = employ] mak+ nonelective contributions 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 a plan may be am5d$ aft] ! beg9n+ ( a plan ye> to provide t ! requirem5ts ( subp>agraph 7,d77i77,,ii7 %all apply to ! arrangem5t = ! plan ye>1 b only if ! am5dm5t is adopt$-- 7,i7 at any "t be=e ! #cj? day be=e ! close ( ! plan ye>1 or 7,,ii7 if ! requirem5ts ( clause 7iii7 are met1 at any "t be=e ! la/ day "u p>agraph 7#h77;,a7 = di/ribut+ excess contributions = ! plan ye>4 7ii7 ,exception :]e plan provid$ = mat*+ contributions ,clause 7i7 %all n apply to any plan ye> if ! plan provid$ at any "t dur+ ! plan ye> t ! requirem5ts ( subp>agraph 7,d77i77,i7 appli$ to ! plan ye>4 7iii7 #d-p]c5t contribution requirem5t ,clause 7i77,,ii7 %all n apply to an arrangem5t unless ! am\nt ( ! contributions describ$ 9 subp>agraph 7,d77i77,,ii7 :i* ! employ] is requir$ to make "u ! arrangem5t = ! plan ye> ) respect to any employee is an am\nt equal to at lea/ #d p]c5t ( ! employee's comp5sation4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bjg4 ,modifications ( rules relat+ to multiple employ] def9$ contribution plans 7a7 ,qualification requirem5ts ,section #dac is am5d$ by add+ at ! end ! foll[+3 7d7 ,application ( qualification requirem5ts = c]ta9 multiple employ] plans ) designat$ plan provid]s 7#a7 ,9 g5]al ,if a plan to :i* subsection 7c7 applies is sponsor$ by employ]s t h a common int]e/ o!r ?an hav+ adopt$ ! plan1 or has a designat$ plan provid]1 !n1 except z provid$ 9 p>agraph 7#c71 ! failure ( ! portion ( ! plan cov]+ ! employees ( an employ] ma9ta9+ ! plan to satisfy any applicable qualification requirem5t "u section #dja7;a7 w n affect ! qualification ( any portion ( ! plan cov]+ employees ( any employ] :o has satisfi$ all su* requirem5ts4 7#b7 ,designat$ plan provid] ,= purposes ( ?is subsection-- 7,a7 ,9 g5]al ,! t]m designat$ plan provid] means ! p]son designat$ "u ! t]ms ( ! plan z ! p]son responsible to p]=m all adm9i/rative duties :i* are reasonably necess>y to ensure t ! plan1 & ea* p>ticipat+ employ]1 meets ! requirem5ts describ$ 9 p>agraph 7#a71 includ+ conduct+ prop] te/+ ( su* plan & employ]s4 7,b7 ,regi/ration1 etc4 requirem5ts ,a p]son %all n be treat$ z a designat$ plan provid] ) respect to any plan unless-- 7i7 ! p]son regi/]s ) ! ,secret>y & provides su* id5tify+ in=mation z ! ,secret>y may require1 & 7ii7 ! p]son cons5ts to audits by ! ,secret>y at su* times z ! ,secret>y det]m9es appropriate to ensure ! p]son is p]=m+ ! duties describ$ 9 subp>agraph 7,a74 7#c7 ,failure by provid] to p]=m duties ,if ! designat$ plan provid] ( a plan does n p]=m ! duties describ$ 9 p>agraph 7#b77;,a7 ) respect to any plan ye> s z to reasonably ensure ! plan meets ! requirem5ts describ$ 9 p>agraph 7#a7-- 7,a7 p>agraph 7#a7 %all n apply to ! plan = ! plan ye>1 & 7,b7 ! det]m9ation z to :e!r ! plan1 or any p>ticipat+ employ]1 meets su* requirem5ts %all be made 9 ! same mann] z made ) respect to a plan )\t a designat$ plan provid]4 7#d7 ,guidance ,! ,secret>y %all issue su* guidance z ! ,secret>y det]m9es appropriate to c>ry out ?is subsection1 includ+ guidance to-- 7,a7 id5tify ! adm9i/rative duties requir$ to be p]=m$ "u p>agraph 7#b77;,a71 & 7,b7 require1 if appropriate1 t ! portion ( ! plan attributable to p>ticipat+ employ]s n meet+ ! requirem5ts describ$ 9 p>agraph 7#a7 be spun (f to plans ma9ta9$ by su* employ]s4 4 7b7 ,modification ( ,,erisa requirem5ts 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 7iii7 & 7iv7 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] & ea* p]son designat$ z a designat$ plan provid] "u section #dac ( ! ,int]nal ,rev5ue ,code ( #aihf4 7iii7 ,! requirem5ts ( ?is clause are met if1 "u ! plan1 ea* p>ticipat+ employ] reta9s fiduci>y responsibility =-- 7,i7 ! selection & monitor+ ( ! p]son designat$ z ! designat$ plan provid] & ! nam$ fiduci>y if diff]5t f su* provid]1 & 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 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>1 a qualifi$ multiple employ] plan 7z def9$ 9 section #c7b77;,c77 :i*1 = ! prec$+ plan ye>-- 7i7 did n h m ?an #b1ejj p>ticipants1 & 7ii7 did n h any employ] sponsor+ ! plan :i* _h m ?an #ejj employees z p>ticipants4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 ,b ,p5sion plan & retirem5t sav+s simplification #baa4 ,modifications ( deadl9es = adopt+ p5sion plan am5dm5ts 7a7 ,requir$ am5dm5ts ,section #dja7;b7 is am5d$-- 7#a7 by /rik+ all t prec$es /ock bonus1 p5sion1 pr(it-%>+ & ins]t+3 7b7 ,retroactive am5dm5ts to1 & adoption (1 a plan 7#a7 ,retroactive *anges to am5dm5ts caus+ plan to fail ,a 1 & 7#b7 by add+ at ! end ! foll[+3 7#b7 ,coord9ation ( tim+ ( p5sion plan am5dm5t adoption1 & rem$ial plan review1 requirem5ts 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 9 ! case ( any requir$ am5dm5t to a /ock bonus1 p5sion1 pr(it-%>+1 or annuity plan-- 7i7 ! plan %all be treat$ z be+ op]at$ 9 accordance ) ! t]ms ( ! plan dur+ ! rem$ial p]iod1 & 7ii7 except z provid$ by ! ,secret>y1 su* plan %all n fail to meet ! requirem5ts ( section #daa7;d77#f7 ( ! ,int]nal ,rev5ue ,code ( #aihf & section #bjd7;g7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd by reason ( su* am5dm5t4 7,b7 ,conditions ,subp>agraph 7,a7 %all n apply to any requir$ am5dm5t to a plan unless-- 7i7 ! requir$ am5dm5t is adopt$ be=e ! end ( ! rem$ial p]iod1 7ii7 ! plan is op]at$ z if ! requir$ am5dm5t 7 9 effect dur+ ! rem$ial p]iod1 & 7iii7 ! requir$ am5dm5t applies retroactively = ! rem$ial p]iod4 7,c7 ,requir$ am5dm5t ,= purposes ( ?is p>agraph1 ! t]m requir$ am5dm5t means any am5dm5t to a plan :i* is requir$ by 7or integral to meet+ ! requirem5ts (7 any ,f$]al law or any regulation issu$ by ! ,secret>y or ! ,secret>y ( ,labor4 7,d7 ,rem$ial p]iod ,= purposes ( ?is p>agraph-- 7i7 ,rem$ial p]iod ,! t]m rem$ial p]iod means1 ) respect to any requir$ am5dm5t to a plan1 ! p]iod-- 7,i7 beg9n+ on ! date ! am5dm5t is requir$ "u ! law or regulation describ$ 9 subp>agraph 7,c7 to take effect1 & 7,,ii7 end+ on ! la/ day 9 ! rem$ial plan review p]iod ) respect to ! plan 9 :i* ! date det]m9$ "u subclause 7,i7 occurs 7or1 if e>li]1 ! date ! plan am5dm5t is adopt$74 7ii7 ,rem$ial plan review p]iod ,! t]m rem$ial plan review p]iod means1 ) respect to any plan1 ! p]iod e/abli%$ by ! ,secret>y "u ! au?ority ( section #dja7;b7 z ! regul> cycle ( review by ! ,secret>y = det]m9+ :e!r ! plan cont9ues to meet ! requirem5ts ( ?is title = treatm5t z a qualifi$ plan "u section #dja7;a74 4 7b7 ,retroactive application ( discretion>y am5dm5ts ,section #dja7;b71 z am5d$ by subsection 7a71 is am5d$ by add+ at ! end ! foll[+3 7#c7 ,discretion>y am5dm5ts ,9 ! case ( an am5dm5t to :i* p>agraphs 7#a7 & 7#b7 d n o!rwise apply1 ! provisions ( p>agraph 7#a7 %all apply to su* am5dm5t if x is to take effect dur+ a plan ye> & is adopt$ by ! la/ day prescrib$ by law 7includ+ ext5sions7 = fil+ ! return ( tax = ! taxable ye> ( ! employ] )9 :i* su* plan ye> ends4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to am5dm5ts tak+ effect ) respect to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bab4 ,t]m9ation ( application ( top-heavy plan rules 7a7 ,9 g5]al ,section #daf is am5d$ by add+ at ! end ! foll[+3 7j7 ,t]m9ation 7#a7 ,9 g5]al ,?is section %all n apply to any plan ye> beg9n+ aft] ,decemb] #ca1 #bjac4 7#b7 ,ve/+ rules applicable to previ\sly accru$ b5efits ,if a plan 0 a top-heavy plan = any plan ye> beg9n+ be=e ,janu>y #a1 #bjad1 !n1 not)/&+ p>agraph 7#a71 ! ve/+ rules applicable to ! plan "u subsection 7b7 = ! plan ye> %all cont9ue to apply to any accru$ b5efit d]iv$ dur+ ! plan ye>4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bac4 ,am5dm5ts to safe h>bor #dja7k7 plans dur+ plan ye> 7a7 ,9 g5]al ,section #dja7k77#ab71 z am5d$ by section #bjf ( ?is ,act1 is am5d$ by r$esignat+ subp>agraph 7,g7 z subp>agraph 7,h7 & by ins]t+ aft] subp>agraph 7,f7 ! foll[+3 7,g7 ,am5dm5ts to safe h>bor plans dur+ plan ye> 7i7 ,9 g5]al ,except z provid$ 9 clause 7ii71 an am5dm5t to an arrangem5t to :i* ?is p>agraph or p>agraph 7#ac7 applies may take effect dur+ a plan ye> if x is adopt$ be=e ! close ( ! plan ye>4 7ii7 ,no r$uction 9 mat*+ contributions ,clause 7i7 %all n apply to any am5dm5t :i* r$uces ! am\nt ( ! mat*+ contributions an employ] is requir$ to make "u ! arrangem5t z 9 effect be=e ! am5dm5t4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bad4 ,modification ( rules relat+ to h>d%ip )drawals f ca% or def]r$ arrangem5ts 7a7 ,9 g5]al ,section #dja7k71 z am5d$ by section #bja ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 7#ae7 ,special rules relat+ to h>d%ip )drawals ,= purposes ( p>agraph 7#b77;,b77i77,,iv7-- 7,a7 ,am\nts :i* may be )drawn ,! foll[+ am\nts may be di/ribut$ ^u h>d%ip ( ! employee3 7i7 ,contributions to a pr(it-%>+ or /ock bonus plan to :i* section #djb7;e77#c7 applies4 7ii7 ,qualifi$ nonelective contributions 7z def9$ 9 subsection 7m77#d77;,c774 7iii7 ,qualifi$ mat*+ contributions describ$ 9 p>agraph 7#c77;,d77ii77,i74 7iv7 ,e>n+s on any contributions describ$ 9 clause 7i71 7ii71 or 7iii74 7,b7 ,no requirem5t to take available loan ,a di/ribution %all n be treat$ z fail+ to be made ^u ! h>d%ip ( an employee solely because ! employee does n take any available loan "u ! plan4 7,c7 ,p>ticipation 9 arrangem5t n condition$ on :e!r h>d%ip di/ribution made ,9 det]m9+ :e!r a di/ribution is made ^u ! h>d%ip ( an employee1 ! ,secret>y %all n take into acc\nt :e!r or n an employee makes elective or employee contributions "u ! arrangem5t = any p]iod aft] ! di/ribution4 4 7b7 ,con=m+ am5dm5t ,subclause 7,,iv7 ( section #dja7k77#b77;,b77i7 is am5d$ to read z foll[s3 7,,iv7 subject to ! provisions ( p>agraph 7#ae71 ^u h>d%ip ( ! employee1 or 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to di/ributions made aft] ,decemb] #ca1 #bjac4 #bae4 ,individual may roll ov] insurance contract into individual retirem5t acc\nt 7a7 ,9 g5]al ,section #djh7;a7 is am5d$ by add+ at ! end ! foll[+ new flu% s5t5ce3 ,a tru/ %all n be treat$ z fail+ to meet ! requirem5ts ( p>agraph 7#c7 m]ely because x holds a life insurance contract :i* 0 transf]r$ to ! tru/ 9 a rollov] contribution describ$ 9 p>agraph 7#a74 4 7b7 ,con=m+ am5dm5ts ,section #gb7m77#c7 is am5d$-- 7#a7 9 subp>agraph 7,a71 by /rik+ or at ! end ( clause 7i71 by /rik+ ! p]iod at ! end ( clause 7ii7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+3 7iii7 held by a tru/ describ$ 9 section #djh7;a7 aft] be+ contribut$ to ! tru/ 9 a rollov] contribution describ$ 9 section #djh7;a77#a74 1 & 7#b7 9 subp>agraph 7,b71 by /rik+ subp>agraph 7,a77ii7 ea* place x appe>s & ins]t+ clauses 7ii7 or 7iii7 ( subp>agraph 7,a74 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to rollov] contributions aft] ,decemb] #ca1 #bjac4 #baf4 ,=feitures allocat$ to p>ticipant's acc\nt may be treat$ z employ] mat*+ or nonelective contributions 7a7 ,9 g5]al ,section #dja7k77#ab71 z am5d$ by sections #bjf & #bac ( ?is ,act1 is am5d$ by r$esignat+ subp>agraph 7,h7 z subp>agraph 7,i71 & by ins]t+ aft] subp>agraph 7,g7 ! foll[+3 7,h7 ,treatm5t ( =feitures allocat$ to employee's acc\nt ,= purposes ( ?is p>agraph & p>agraph 7#ac71 an employ] may treat a =feiture allocat$ to an employee's acc\nt = any plan ye> z a mat*+ or nonelective contribution made by ! employ] :i* is tak5 into acc\nt 9 det]m9+ :e!r ! contribution requirem5ts ( ?is p>agraph or p>agraph 7#ac71 :i*ev] is applicable1 are met4 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bag4 ,"t = provid+ explanation ( qualifi$ pr]etirem5t survivor annuity 7a7 ,am5dm5t to ,int]nal ,rev5ue ,code ( #aihf ,subp>agraph 7,b7 ( section #dag7;a77#c7 is am5d$ to read z foll[s3 7,b7 ,explanation ( qualifi$ pr]etirem5t survivor annuity ,ea* plan %all provide to ea* p>ticipant1 )9 a reasonable "t aft] ! individual becomes a p>ticipant 7& consi/5t ) su* regulations z ! ,secret>y may prescribe71 a writt5 explanation ) respect to ! qualifi$ pr]etirem5t survivor annuity comp>able to ! explanation requir$ "u subp>agraph 7,a74 ,a plan %all be treat$ z meet+ ! requirem5ts ( ?is subp>agraph if ! explanation is includ$ ) ea* summ>y plan description requir$ to be provid$ to ! p>ticipant "u section #ajb ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbb74 4 7b7 ,am5dm5t to ,employee ,retirem5t ,income ,security ,act ( #aigd ,subp>agraph 7,b7 ( section #bje7;c77#c7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd is am5d$ to read z foll[s3 7,b7 ,ea* plan %all provide to ea* p>ticipant1 )9 a reasonable "t aft] ! individual becomes a p>ticipant 7& consi/5t ) su* regulations z ! ,secret>y ( ! ,treasury may prescribe71 a writt5 explanation ) respect to ! qualifi$ pr]etirem5t survivor annuity comp>able to ! explanation requir$ "u subp>agraph 7,a74 ,a plan %all be treat$ z meet+ ! requirem5ts ( ?is subp>agraph if ! explanation is includ$ ) ea* summ>y plan description requir$ to be provid$ to ! p>ticipant "u section #ajb4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to-- 7#a7 individuals :o become p>ticipants aft] ,decemb] #ca1 #bjac1 & 7#b7 individuals :o became p>ticipants be=e su* date b to :om ! writt5 explanation "u section #dag7;a77#c77;,b7 ( ! ,int]nal ,rev5ue ,code ( #aihf & section #bje7;c77#c77;,b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7z 9 effect be=e su* am5dm5ts7 0 n requir$ to be provid$ be=e ,janu>y #a1 #bjad4 ,9 ! case ( any individual describ$ 9 p>agraph 7#b71 a plan %all be treat$ z meet+ ! requirem5ts ( su* sections #dag7;a77#c77;,b7 & #bje7;c77#c77;,b7 7z 9 effect aft] su* am5dm5ts7 if ! writt5 explanation is provid$ )9 a reasonable p]iod aft] ,decemb] #ca1 #bjac4 #bah4 ,modifications ( additional p>ticipation requirem5ts = def9$ b5efit plans 7a7 ,9 g5]al ,section #dja7;a77#bf7 is am5d$ by r$esignat+ subp>agraph 7,h7 z subp>agraph 7,j7 & by ins]t+ aft] subp>agraph 7,g7 ! foll[+3 7,h7 ,requirem5ts may be satisfi$ ?r\gh m9imum contributions to def9$ contribution plan 7i7 ,9 g5]al ,?is p>agraph %all n apply to a def9$ b5efit plan ( an employ] = any plan ye> if-- 7,i7 ! def9$ b5efit plan is aggregat$ ) a def9$ contribution plan ( ! employ] = purposes ( subsection 7a77#d7 & section #daj7;b71 7,,ii7 ! def9$ b5efit plan & ! def9$ contribution plan1 :5 s aggregat$1 meet ! requirem5ts ( subsection 7a77#d7 & section #daj7;b71 & 7,,iii7 ! contribution requirem5ts ( clause 7ii7 are met ) respect to ! def9$ contribution plan4 7ii7 ,contribution requirem5ts ,! requirem5ts ( ?is clause are met ) respect to a def9$ contribution plan if1 "u ! plan1 ! employ] is requir$ to make nonelective contributions = ! applicable plan ye> ( at lea/ #g4e p]c5t ( comp5sation = a numb] ( employees at lea/ equal to ! numb] ( employees :i* ! def9$ b5efit plan w\ld h be5 requir$ to b5efit "u ?is p>agraph )\t reg>d to ?is subp>agraph4 ,no highly comp5sat$ employees 7)9 ! mean+ ( section #dad7q77 may be tak5 into acc\nt 9 det]m9+ :e!r ! requirem5ts ( ?is clause are met4 7iii7 ,applicable plan ye> ,= purposes ( clause 7ii71 ! t]m applicable plan ye> means ! plan ye> ( ! def9$ contribution plan :i* ends ) or )9 ! plan ye> ( ! def9$ b5efit plan to :i* clause 7i7 applies4 7,i7 ,special rules = froz5 plans 7i7 ,aggregation p]mitt$ to satisfy requirem5ts 7,i7 ,9 g5]al ,except z provid$ 9 subclauses 7,,ii7 & 7,,iii71 if a plan is a froz5 def9$ b5efit plan = any plan ye>1 an employ] may aggregate ! plan ) any o!r def9$ b5efit plan or def9$ contribution plan ( ! employ] = purposes ( det]m9+ :e!r ! requirem5ts ( ?is p>agraph are met ) respect to ! froz5 def9$ b5efit plan4 7,,ii7 ,aggregation = o!r purposes ,an employ] may n apply subclause 7,i7 unless ! employ] also aggregates ! plans = purposes ( subsection 7a77#d7 & section #daj7;b74 7,,iii7 ,b5efits ( highly comp5sat$ employees disreg>d$ ,9 ! case ( any o!r plan aggregat$ ) a froz5 def9$ b5efit plan "u subclause 7,i71 accru$ b5efits ( highly comp5sat$ employees %all n be tak5 into acc\nt 9 apply+ subclause 7,i74 7ii7 ,requirem5ts n to apply 9 c]ta9 cases 7,i7 ,9 g5]al ,except z provid$ 9 subclause 7,,ii71 ?is p>agraph %all apply to a froz5 def9$ b5efit plan ( an employ] = any plan ye> only if ! employ] ma9ta9s any o!r def9$ b5efit plan dur+ ! #f-ye> p]iod beg9n+ ) ! fir/ day ( ! plan ye>4 7,,ii7 ,retroactive application ,clause 7i7 %all n apply unless ! froz5 def9$ b5efit plan provides t if ! employ] e/abli%es or ma9ta9s any o!r def9$ b5efit plan dur+ ! #f-ye> p]iod "u subclause 7,i71 ea* employee 7o!r ?an a highly comp5sat$ employee7 %all retroactively accrue b5efits "u ! froz5 def9$ b5efit plan = ea* ye> ( s]vice ! employee w\ld h _h "u ! plan dur+ su* p]iod 7det]m9$ z if ! employee 7 "o ( ! employees requir$ to b5efit "u ! plan "u ?is p>agraph74 7iii7 ,froz5 def9$ b5efit plan ,= purposes ( ?is subp>agraph1 ! t]m froz5 def9$ b5efit plan means a def9$ b5efit plan :i* has 9 effect an am5dm5t t provides t ! plan may n accept any new p>ticipants aft] ! effective date ( ! am5dm5t4 7iv7 ,highly comp5sat$ employee ,! t]m highly comp5sat$ employee has ! mean+ giv5 su* t]m by section #dad7q74 4 7b7 ,effective date ,! am5dm5t made by ?is section applies to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bai4 ,treatm5t ( cu/odial acc\nts on t]m9ation ( section #djc7;b7 plans 7a7 ,9 g5]al ,section #djc7;b77#g7 is am5d$ by add+ at ! end ! foll[+3 7,d7 ,treatm5t ( cu/odial acc\nt ^u plan t]m9ation 7i7 ,9 g5]al ,if-- 7,i7 an employ] t]m9ates ! plan "u :i* am\nts are contribut$ to a cu/odial acc\nt "u subp>agraph 7,a71 & 7,,ii7 ! p]son hold+ ! assets ( ! acc\nt has demon/rat$ to ! satisfaction ( ! ,secret>y "u section #djh7;a77#b7 t ! p]son is qualifi$ to be a tru/ee ( an individual retirem5t plan1 !n1 z ( ! date ( ! t]m9ation1 ! cu/odial acc\nt %all be deem$ to be an individual retirem5t plan = purposes ( ?is title4 7ii7 ,treatm5t z ,ro? ,,ira ,any cu/odial acc\nt treat$ z an individual retirem5t plan "u clause 7i7 %all be treat$ z a ,ro? ,,ira only if ! cu/odial acc\nt 0 a designat$ ,ro? acc\nt4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan t]m9ations occurr+ aft] ,decemb] #ca1 #bjac4 #bbj4 ,secure def]ral arrangem5ts 7a7 ,9 g5]al ,subsection 7k7 ( section #dja1 z am5d$ by ?is ,act1 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#af7 ,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 is am5d$ by r$esignat+ p>agraph 7#ac7 z p>agraph 7#ad7 & by add+ aft] p>agraph 7#ab7 ! foll[+ new p>agraph3 7#ac7 ,alt]native me?od = secure def]ral arrangem5ts ,a def9$ 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#af771 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$it 7#a7 ,9 g5]al ,subp>t 7,d7 ( "p ,,iv ( sub*apt] ,a ( ,*apt] #a ( subtitle ,a is am5d$ 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 mat*+ & nonelective contributions "u a secure def]ral arrangem5t 7z def9$ 9 section #dja7k77#af77 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 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$it cross-ref]5ces 7i7 ,subsection 7k7 ( section #dja1 z am5d$ by subsection 7a71 is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#ag7 ,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 #dja1 z am5d$ by subsection 7b71 is am5d$ by r$esignat+ p>agraph 7#ad7 z p>agraph 7#ae7 & by ins]t+ aft] p>agraph 7#ac7 ! foll[+ new p>agraph3 7#ad7 ,secure def]ral arrangem5t cr$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 arrangem5ts ,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#af7 ( 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/ems1 & 7#b7 cl>ify1 simplify1 & 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#af77;,c7 ( su* ,code1 especially 9 cases :]e ! employ] has employees subject to diff]5t payroll & adm9i/rative sy/ems4 7e7 ,effective dates 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$it ,! am5dm5ts made by subsection 7c7 %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bba4 ,portability ( lifetime income options 7a7 ,9 g5]al ,subsection 7a7 ( section #dja is am5d$ 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 9 ! case ( a plan ma9ta9$ by an employ] describ$ 9 subsection 7e77#a77;,a71 ) 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 #bbb4 ,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 #bbc4 ,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 ,c ,longevity re=ms #bca4 ,modification ( requir$ m9imum di/ribution rules :]e portion ( b5efit ( def9$ contribution plan is annuitiz$ 7a7 ,9 g5]al ,section #dja7;a77#i7 is am5d$ by r$esignat+ subp>agraph 7,f7 z subp>agraph 7,g7 & by ins]t+ aft] subp>agraph 7,e7 ! foll[+3 7,f7 ,exemption = c]ta9 annuitiz$ am\nts ,?is p>agraph %all n apply to ! portion ( an employee's entire int]e/ "u a def9$ contribution plan :i* is inve/$ 9 a qualifi$ def]r$ annuity 9 accordance ) ! requirem5ts ( subsection 7o74 4 7b7 ,inve/m5t 9 qualifi$ annuity ,section #dja is am5d$ by r$esignat+ subsection 7o7 z subsection 7p7 & by ins]t+ aft] subsection 7n7 ! foll[+3 7o7 ,rules & def9itions relat+ to inve/m5ts 9 qualifi$ def]r$ annuities 7#a7 ,9 g5]al ,subp>agraph 7,f7 ( subsection 7a77#i7 %all apply to ! portion ( an employee's entire int]e/ "u ! plan inve/$ 9 a qualifi$ def]r$ annuity only if-- 7,a7 ! annuity contract is pur*as$ on or be=e ! requir$ beg9n+ date1 & 7,b7 ! inve/m5t 9 ! contract does n exce$ #be p]c5t ( ! employee's entire int]e/ "u ! plan z ( ! close ( ! cal5d> ye> prec$+ ! cal5d> ye> 9 :i* ! pur*ase occurs4 7#b7 ,exception applies only to #a annuity ,subp>agraph 7,f7 ( subsection 7a77#i7 %all apply only ) respect to #a qualifi$ def]r$ annuity pur*as$ ) a portion ( an employee's int]e/ 9 any plan4 7#c7 ,qualifi$ def]r$ annuity ,= purposes ( subsection 7a77#i77;,f7 & ?is subsection1 ! t]m qualifi$ def]r$ annuity means an annuity contract-- 7,a7 :i* is a comm]cial annuity 7z def9$ 9 section #cdje7;e77#f77 :i* provides b5efits 9 ! =m ( ei!r-- 7i7 a s+le annuity = ! life ( ! employee "u :i* ! annuity paym5ts are sub/antially equal p]iodic paym5ts made n less frequ5tly ?an annually1 or 7ii7 a qualifi$ jo9t & survivor annuity 7z def9$ 9 section #dag7;b77 :i* is ! actu>ial equival5t ( an annuity "u clause 7i71 & 7,b7 "u :i* paym5ts are def]r$ b mu/ comm5ce no lat] ?an ! date on :i* ! employee atta9s ! age ( #he4 7#d7 ,employee dy+ be=e di/ributions beg9 ,if-- 7,a7 an employee dies be=e ! di/ribution ( ! employee's int]e/ has begun 9 accordance ) subsection 7a77#i77;,a77ii7 & be=e ! employee has inve/$ 9 a qualifi$ def]r$ annuity 9 accordance ) ?is subsection1 & 7,b7 ! designat$ b5efici>y is ! surviv+ sp\se ( ! employee1 ! surviv+ sp\se may inve/ any portion ( ! entire int]e/ 9 a qualifi$ def]r$ annuity 9 accordance ) ?is subsection 9 ! same mann] z ! employee b ! requir$ beg9n+ date %all n be e>li] ?an1 & ! def]ral p]iod ( ! annuity %all be bas$ on1 ! dates ! employee w\ld h atta9$ ! age ( #gj or #he1 respectively4 7#e7 ,special rule = ,i,r,as & #djc7;b7s ,9 ! case ( individual retirem5t plans & annuity contracts to :i* ! requirem5ts ( subsection 7a77#i7 apply by reason ( subsections 7a77#f7 & 7b77#c7 ( section #djh & section #djc7;b77#aj71 ! employee may elect to treat all su* plans & acc\nts ) ! same requir$ beg9n+ date z #a plan = purposes ( apply+ ?is subsection4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to inve/m5ts 9 annuity contracts aft] ,decemb] #ca1 #bjac4 #bcb4 ,updat+ ( mortality tables = m9imum requir$ di/ributions ,section #dja7;a77#i71 z am5d$ by section #bca1 is am5d$ by r$esignat+ subp>agraph 7,g7 z subp>agraph 7,h7 & by ins]t+ aft] subp>agraph 7,f7 ! foll[+3 7,g7 ,mortality tables 7i7 ,initial update ,n lat] ?an #a ye> aft] ! date ( ! enactm5t ( ?is subp>agraph1 ! ,secret>y %all ei!r update1 or provide new tables to replace1 ! mortality tables us$ z ( su* date = purposes ( ?is p>agraph4 7ii7 ,p]iodic revision ,! ,secret>y %all 7at lea/ e #e ye>s7 make revisions 91 or provide new tables to replace1 any table 9 effect "u ?is subp>agraph to reflect ! actual exp]i5ce ( p5sion plans & project$ tr5ds 9 su* exp]i5ce4 7iii7 ,effective date ,any table prescrib$ "u ?is subp>agraph %all apply to plan ye>s beg9n+ aft] ! date :i* is #a ye> aft] publication ( ! f9al table4 4 #bcc4 ,m9imum requir$ di/ributions may be roll$ ov] into ,ro? ,i,r,as 7a7 ,9 g5]al ,section #djh;,a7e7 is am5d$ by add+ at ! end ! foll[+3 7#c7 ,rollov] ( m9imum requir$ di/ributions all[$ ,section #djh7;d77#c77;,e7 %all n apply 9 det]m9+ :e!r a rollov] contribution is a qualifi$ rollov] di/ribution "u p>agraph 7#a74 4 7b7 ,effective date ,! am5dm5t made by ?is section %all apply to di/ributions = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bcd4 ,transf] ( m9imum survivor annuity requirem5ts f plan sponsors to annuity provid]s 7a7 ,am5dm5t ( #aihf ,code ,section #dag is am5d$ by add+ at ! end ! foll[+3 7h7 ,transf] ( m9imum survivor annuity requirem5ts f plan sponsors to annuity provid]s 7#a7 ,9 g5]al ,if a def9$ contribution plan to :i* ! requirem5ts ( section #dja7;a77#aa7 & ?is section apply has a designat$ annuity provid]1 !n1 except z provid$ 9 p>agraph 7#c71 ! designat$ annuity provid] 7& n any plan sponsor or adm9i/rator7 %all be liable = any failure to meet any su* requirem5t4 7#b7 ,designat$ annuity provid] ,= purposes ( ?is subsection1 ! t]m designat$ annuity provid] means a p]son lic5s$ "u ! laws ( any ,/ate to issue annuity contracts :i* has ent]$ into a contract ) ! plan sponsor or o!r p]son :o is a fiduci>y ) respect to ! plan to-- 7,a7 provide annuity contracts to p>ticipants & b5efici>ies "u ! plan1 & 7,b7 meet all requirem5ts "u ?is section & section #dja7;a77#aa7 ) respect to ! provid+ ( su* annuities1 includ+ provid+ su* annuities 9 ! prop] =m1 provid+ any notice or writt5 explanations dur+ any applicable notice p]iod1 & provid+ ! opportunity = p>ticipants & _! sp\ses or b5efici>ies to make appropriate elections dur+ any applicable election p]iod4 7#c7 ,requirem5t = prud5t solicitation & ret5tion ( provid] ,?is subsection %all apply to a plan ) a designat$ annuity provid] only if ! plan sponsor or o!r p]son :o is a fiduci>y ) respect to ! plan met all requirem5ts = ! prud5t selection & p]iodic review ( ! annuity provid] ) respect to :om a contract describ$ 9 p>agraph 7#b7 0 ent]$ into4 7#d7 ,au?ority to *>ge fees to p>ticipants ,a plan %all n be treat$ z fail+ to meet ! requirem5ts ( ?is subsection m]ely because plan assets are us$ to pay = reasonable exp5ses ( ! designat$ annuity provid] 9 meet+ ! requirem5ts describ$ 9 p>agraph 7#b77;,b74 7#e7 ,electronic notification ,! ,secret>y %all1 to ! maximum ext5t practicable1 ensure t notices & explanations provid$ by ! designat$ annuity provid] are provid$ 9 electronic =m4 4 7b7 ,am5dm5t ( ,,erisa ,section #bje ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajee7 is am5d$ by add+ at ! end ! foll[+3 7m7 ,transf] ( m9imum survivor annuity requirem5ts f plan sponsors to annuity provid]s 7#a7 ,9 g5]al ,if an individual acc\nt plan to :i* ! requirem5ts ( ?is section apply has a designat$ annuity provid]1 !n1 except z provid$ 9 p>agraph 7#c71 ! designat$ annuity provid] 7& n any plan sponsor or adm9i/rator7 %all be liable = any failure to meet any su* requirem5t4 7#b7 ,designat$ annuity provid] ,= purposes ( ?is subsection1 ! t]m designat$ annuity provid] means a p]son lic5s$ "u ! laws ( any ,/ate to issue annuity contracts :i* has ent]$ into a contract ) ! plan sponsor or o!r p]son :o is a fiduci>y ) respect to ! plan to-- 7,a7 provide annuity contracts to p>ticipants & b5efici>ies "u ! plan1 & 7,b7 meet all requirem5ts "u ?is section & section #dja7;a77#aa7 ( ! ,int]nal ,rev5ue ,code ( #aihf ) respect to ! provid+ ( su* annuities1 includ+ provid+ su* annuities 9 ! prop] =m1 provid+ any notice or writt5 explanations dur+ any applicable notice p]iod1 & provid+ ! opportunity = p>ticipants & _! sp\ses or b5efici>ies to make appropriate elections dur+ any applicable election p]iod4 7#c7 ,requirem5t = prud5t solicitation & ret5tion ( provid] ,?is subsection %all apply to a plan ) a designat$ annuity provid] only if ! plan sponsor or o!r p]son :o is a fiduci>y ) respect to ! plan met all requirem5ts = ! prud5t selection & p]iodic review ( ! annuity provid] ) respect to :om a contract describ$ 9 p>agraph 7#b7 0 ent]$ into4 7#d7 ,au?ority to *>ge fees to p>ticipants ,a plan %all n be treat$ z fail+ to meet ! requirem5ts ( ?is subsection m]ely because plan assets are us$ to pay = reasonable exp5ses ( ! designat$ annuity provid] 9 meet+ ! requirem5ts describ$ 9 p>agraph 7#b77;,b74 7#e7 ,electronic notification ,! ,secret>y ( ! ,treasury %all1 to ! maximum ext5t practicable1 ensure t notices & explanations provid$ by ! designat$ annuity provid] are provid$ 9 electronic =m4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bce4 ,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 ,d ,modifications to ! ,employee ,retirem5t ,income ,security ,act ( #aigd #bda4 ,electronic communication ( p5sion plan in=mation 7a7 ,am5dm5t to ,employee ,retirem5t ,income ,security ,act ( #aigd ,"p #a ( subtitle ,b ( title #a ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajba et seq47 is am5d$ by add+ at ! end ! foll[+ new section3 #aab4 ,electronic communication ( p5sion plan in=mation ,any docum5t t is requir$ or p]mitt$ "u ?is title to be furni%$ to a plan p>ticipant1 b5efici>y1 or o!r individual ) respect to a p5sion plan may be furni%$ 9 electronic =m if-- 7#a7 ! sy/em = furni%+ su* a docum5t-- 7,a7 is design$ to result 9 access to ! docum5t by ! p>ticipant1 b5efici>y1 or o!r specifi$ individual ?r\gh electronic means1 includ+-- 7i7 ! direct deliv]y ( mat]ial to an electronic address ( su* p>ticipant1 b5efici>y1 or individual1 7ii7 ! po/+ ( mat]ial to a website or o!r int]net or electronic-bas$ in=mation repository to :i* access has be5 grant$ to su* p>ticipant1 b5efici>y1 or individual1 b only if prop] notice ( ! po/+ has be5 provid$ 7:i* may include notice furni%$ by o!r electronic means if ! cont5t ( ! notice conveys ! ne$ to take action to access ! po/$ mat]ial71 & 7iii7 o!r electronic means reasonably calculat$ to ensure actual receipt ( ! mat]ial by su* p>ticipant1 b5efici>y1 or individual1 & 7,b7 protects ! confid5tiality ( p]sonal in=mation relat+ to su* p>ticipant's1 b5efici>y's1 or individual's acc\nts & b5efits2 7#b7 ! p>ticipant or b5efici>y has n elect$ to receive a pap] v]sion ( su* docum5t2 7#c7 notice is provid$ to ea* p>ticipant or b5efici>y1 9 electronic or non-electronic =m1 be=e a docum5t is furni%$ electronically1 t apprises ! individual ( ! "r to elect to receive a pap] v]sion ( su* docum5t2 & 7#d7 ! electronically furni%$ docum5t-- 7,a7 is prep>$ & furni%$ 9 a mann] t is consi/5t ) ! /yle1 =mat1 & cont5t requirem5ts applicable to ! p>ticul> docum5t2 & 7,b7 includes a notice t apprises ! individual ( ! significance ( ! docum5t :5 x is n o!rwise reasonably evid5t z transmitt$4 ,= purposes ( ?is section1 ! t]m docum5t includes reports1 /atem5ts1 notices1 notifications1 & o!r in=mation4 4 7b7 ,am5dm5t to ,int]nal ,rev5ue ,code ( #aihf ,section #dad ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new subsection3 7y7 ,electronic communication ( p5sion plan in=mation ,any docum5t t is requir$ or p]mitt$ "u ?is title to be furni%$ to a plan p>ticipant1 b5efici>y1 or o!r individual ) respect to a p5sion plan may be furni%$ 9 electronic =m if-- 7#a7 ! sy/em = furni%+ su* a docum5t-- 7,a7 is design$ to result 9 access to ! docum5t by ! p>ticipant1 b5efici>y1 or o!r specifi$ individual ?r\gh electronic means1 includ+-- 7i7 ! direct deliv]y ( mat]ial to an electronic address ( su* p>ticipant1 b5efici>y1 or individual1 7ii7 ! po/+ ( mat]ial to a website or o!r int]net or electronic-bas$ in=mation repository to :i* access has be5 grant$ to su* p>ticipant1 b5efici>y1 or individual1 b only if prop] notice ( ! po/+ has be5 provid$ 7:i* may include notice furni%$ by o!r electronic means if ! cont5t ( ! notice conveys ! ne$ to take action to access ! po/$ mat]ial71 & 7iii7 o!r electronic means reasonably calculat$ to ensure actual receipt ( ! mat]ial by su* p>ticipant1 b5efici>y1 or individual1 & 7,b7 protects ! confid5tiality ( p]sonal in=mation relat+ to su* p>ticipant's1 b5efici>y's1 or individual's acc\nts & b5efits2 7#b7 ! p>ticipant or b5efici>y has n elect$ to receive a pap] v]sion ( su* docum5t2 7#c7 notice is provid$ to ea* p>ticipant or b5efici>y1 9 electronic or non-electronic =m1 be=e a docum5t is furni%$ electronically1 t apprises ! individual ( ! "r to elect to receive a pap] v]sion ( su* docum5t2 & 7#d7 ! electronically furni%$ docum5t-- 7,a7 is prep>$ & furni%$ 9 a mann] t is consi/5t ) ! /yle1 =mat1 & cont5t requirem5ts applicable to ! p>ticul> docum5t2 & 7,b7 includes a notice t apprises ! individual ( ! significance ( ! docum5t :5 x is n o!rwise reasonably evid5t z transmitt$4 ,= purposes ( ?is subsection1 ! t]m docum5t includes reports1 /atem5ts1 notices1 notifications1 & o!r in=mation4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to docum5ts furni%$ ) respect to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bdb4 ,modification ( deadl9es = summ>y plan description updates 7a7 ,9 g5]al ,p>agraph 7#a7 ( section #ajd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7;b77#a77 is am5d$ to read z foll[s3 7#a7 7,a7 ,! adm9i/rator %all furni% to ea* p>ticipant1 & ea* b5efici>y receiv+ b5efits "u ! plan1 a copy ( ! summ>y plan description1 & all modifications & *anges ref]r$ to 9 section #ajb7;a7-- 7i7 )9 #ij days aft] becom+ a p>ticipant1 or 9 ! case ( a b5efici>y1 )9 #ij days aft] fir/ receiv+ b5efits1 or 7ii7 if lat]1 )9 #abj days aft] ! plan becomes subject to ?is "p4 7,b7 7i7 ,except z provid$ 9 clause 7ii71 ! adm9i/rator %all furni% to ea* p>ticipant1 & ea* b5efici>y receiv+ b5efits "u ! plan1 e fif? ye> aft] ! plan becomes subject to ?is "p an updat$ summ>y plan description describ$ 9 section #ajb :i* integrates all plan am5dm5ts made )9 su* five-ye> p]iod1 except t 9 a case :]e no am5dm5ts h be5 made to a plan dur+ su* five-ye> p]iod1 ?is s5t5ce %all n apply4 ,not)/&+ ! =ego+1 ! adm9i/rator %all furni% to ea* p>ticipant1 & to ea* b5efici>y receiv+ b5efits "u ! plan1 ! summ>y plan description describ$ 9 section #ajb e t5? ye> aft] ! plan becomes subject to ?is "p4 7ii7 ,9 ! case ( a p5sion plan1 ! adm9i/rator %all furni% to ea* p>ticipant1 & ea* b5efici>y receiv+ b5efits "u ! plan1 #baj days aft] ! end ( ea* rem$ial plan review p]iod1 an updat$ summ>y plan description describ$ 9 section #ajb :i* integrates all plan am5dm5ts made dur+ su* p]iod1 except t if no am5dm5ts h be5 made to a plan dur+ su* p]iod1 an updat$ summ>y plan description %all be furni%$ n lat] ?an #baj days aft] ! end ( ! subsequ5t rem$ial plan review p]iod 7)\t reg>d to :e!r plan am5dm5ts 7 made dur+ su* subsequ5t p]iod74 7,c7 7i7 ,if !re is a modification or *ange describ$ 9 section #ajb7;a7 7o!r ?an a mat]ial r$uction 9 cov]$ s]vices or b5efits provid$ 9 ! case ( a gr\p heal? plan 7z def9$ 9 section #gcc7;a77#a7771 a summ>y description ( su* modification or *ange %all be furni%$ n lat] ?an #baj days aft] ! end ( ! plan ye> 9 :i* ! *ange is adopt$ to ea* p>ticipant1 & to ea* b5efici>y :o is receiv+ b5efits "u ! plan4 7ii7 ,= purposes ( clause 7i71 any am5dm5t to a p5sion plan adopt$ dur+ a rem$ial plan review p]iod %all be treat$ z adopt$ 9 ! plan ye> 9 :i* ! am5dm5t took effect4 7,d7 ,if !re is a modification or *ange describ$ 9 section #ajb7;a7 t is a mat]ial r$uction 9 cov]$ s]vices or b5efits provid$ "u a gr\p heal? plan 7z def9$ 9 section #gcc7;a77#a771 a summ>y description ( su* modification or *ange %all be furni%$ to p>ticipants & b5efici>ies n lat] ?an #fj days aft] ! date ( ! adoption ( ! modification or *ange4 ,9 ! alt]native1 ! plan sponsors may provide su* description at regul> int]vals ( n m ?an #ij days4 7,e7 ,9 ?is p>agraph1 ! t]m rem$ial plan review p]iod means1 ) respect to any p5sion plan1 ! p]iod e/abli%$ by ! ,secret>y ( ! ,treasury "u ! au?ority ( subsection 7b7 ( section #dja ( ! ,int]nal ,rev5ue ,code ( #aihf z ! regul> cycle ( review by ! ,secret>y ( ! ,treasury = det]m9+ :e!r ! p5sion plan cont9ues to meet ! requirem5ts ( su* ,code = treatm5t z a qualifi$ plan "u subsection 7a7 ( su* section #dja4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply ) respect to summ>y plan descriptions furni%$ "u section #ajd7;b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #ajbd7;b771 & modifications or *anges describ$ 9 section #ajb7;a7 ( su* ,act 7#bi ,u4,s4,c4 #ajbb7;a771 ) respect to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bdc4 ,modification ( small plan simplifi$ report+ requirem5ts 7a7 ,9 g5]al ,section #ajd7;a77#b7 ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd1 z am5d$ by section #bja7;c7 ( ?is ,act1 is am5d$ by /rik+ #ajj p>ticipants & ins]t+ #ajj p>ticipants :o h an accru$ b5efit "u ! plan4 7b7 ,effective date ,! am5dm5ts made by ?is section %all apply to plan ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #bdd4 ,fiduci>y requirem5t reg>d+ selection ( annuity provid] & annuity contract 7a7 ,9 g5]al ,section #djd ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #aajd7 is am5d$ by add+ at ! end ! foll[+3 7e7 ,ability ( annuity provid]s ,to make paym5ts ,9 ! case ( ! selection ( an annuity provid] & annuity contract 9 connection ) ! paym5t ( b5efits "u a def9$ contribution plan1 ! fiduci>y requirem5t "u subsection 7a77#a77;,b7 is deem$ satisfi$ ) respect to det]m9+ ! ability ( ! annuity provid] to make all paym5ts due "u ! contract to ! ext5t t su* paym5ts are gu>ante$ by a ,/ate gu>anty association "u applicable ,/ate law 9 effect z ( ! date ( issuance ( ! contract4 4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to annuity contracts pur*as$ aft] ! date ( enactm5t ( ?is ,act4 ,,iii ,individual retirem5t inve/m5t advice re=m #cja4 ,transf] to ,secret>y ( ! ,treasury ( au?orities reg>d+ individual retirem5t plans 7a7 ,9 g5]al ,section #ajb ( ,reorganization ,plan ,no4 #d ( #aigh 7ratifi$ & affirm$ z law by ,public ,law #ih-ecb 7#ih ,/at4 #bgje77 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by /rik+ & at ! end ( clause 7ii71 7,b7 by /rik+ & at ! end ( clause 7iii71 & 7,c7 by ins]t+ 7iv7 regulations1 rul+s1 op9ions1 & exemptions relat+ to individual retirem5t acc\nts describ$ 9 section #djh7;a7 ( ! ,code & individual retirem5t annuities describ$ 9 section #djh7;b7 ( ! ,code1 includ+ simplifi$ employee p5sions "u section #djh7k7 ( ! ,code & simple retirem5t acc\nts "u section #djh7p7 ( ! ,code2 & 7v7 regulations describ$ 9 section #ajc7;b7 ( ?is ,plan2 & at ! end ( clause 7iii7 7z am5d$ by subp>agraph 7,b771 & 7#b7 by add+ at ! end ! foll[+ new flu% s5t5ce3 ,! ,secret>y ( ! ,treasury %all consult ) ! ,securities & ,ex*ange ,commission 9 prescrib+ regulations1 rul+s1 op9ions1 & exemptions "u subsection 7a77iv7 t provide guidance ( g5]al application z to ! pr(essional /&>ds ( c>e 7:e!r involv+ fiduci>y1 suitability1 or o!r /&>ds7 ow$ by brok]s & inve/m5t advisors to own]s & acc\nt hold]s ( acc\nts & annuities describ$ 9 su* subsection4 4 7b7 ,jo9t au?ority ,section #ajc ( su* ,plan is am5d$-- 7#a7 by /rik+ ,9 ! case ( & ins]t+3 7a7 ,9 ! case ( 2 & 7#b7 by add+ at ! end3 7b7 7#a7 ,! ,secret>y ( ! ,treasury & ! ,secret>y ( ,labor %all h jo9t au?ority to issue regulations describ$ 9 ?is subsection1 & any su* regulations %all be issu$ jo9tly by su* ,secret>ies4 7#b7 ,a regulation is describ$ 9 ?is subsection if 7i7 ! regulation is n describ$ 9 clause 7i71 7ii71 7iii71 or 7iv7 ( section #ajb7;a7 ( ?is ,plan & 7ii7 def9es or int]prets a t]m or requirem5t t is includ$ 9 section #dige ( ! ,code or section #djf ( ,,erisa4 ,! det]m9ation ( :e!r any regulation is describ$ 9 ?is subsection %all be made )\t reg>d to :e!r any su* t]m or requirem5t is also us$ or def9$ 9 any o!r provision ( ! ,code or ,,erisa4 4 7c7 ,effective date 7#a7 ,9 g5]al ,! am5dm5ts made by ?is section %all apply to regulations1 rul+s1 op9ions1 & exemptions :i* h n be5 f9aliz$ z ( ,july #h1 #bjac4 7#b7 ,transition ,any f9al regulation1 rul+1 op9ion1 or exemption describ$ 9 section #ajb7;a77iv7 or #ajc7;b7 ( ,reorganization ,plan ,no4 #d ( #aigh 7z add$ by ! am5dm5ts made by ?is section7 :i* 0 issu$ by ! ,secret>y ( ,labor be=e ,july #i1 #bjac1 %all apply until su* "t z su* regulation1 rul+1 op9ion1 or exemption is revok$ or modifi$ pursuant to su* am5dm5ts4